High 3G price to adversely impact Indian mobile networks: GSMA

High 3G spectrum base price of Rs 3,705 crore recommended by inter-ministerial panel Telecom Commission and less quantum of airwaves being put for auction will adversely impact development of Indian mobile networks, global telecom body GSM Association said today.

"The GSMA is concerned by the action of the Telecom Commission to increase reserve prices for India's 2100MHz (3G) spectrum auction next month - almost 36% higher than those recommended by the Telecom Regulatory Authority of India (TRAI)," GSMA's Chief Regulatory Officer Tom Phillips said in statement.

Telecom regulator TRAI last month recommended base price of Rs 2,720 crore per Mhz for 3G.

Phillips said that Indian government's decision to auction only 5 Mhz of 3G spectrum against 20 Mhz demanded by industry and recommended by TRAI "risks further distorting the outcome of the auction to the disadvantage of India's citizens."

Government on Wednesday approved releasing of 15 Mhz of 3G spectrum but said that the process will take about 1 year.

"While high auction prices may generate short-term revenues for the government, in the longer term they will negatively impact the development of India's mobile networks and delay investment in infrastructure, resulting in higher retail prices and an inferior mobile experience for consumers," Phillips said.