Rules clearer but spectrum price still high in India: Telenor

Norwegian telco Telenor today lauded the improvement in the regulatory environment in India, saying policies now are much more clear and predictable but spectrum prices still remain "way too high".
"In India over the last few years, the regulations have become much more predictable... Department of Telecom and also the regulator Trai really have improved a lot since we entered India, so regulations are now more clear and more predictable," Telenor CEO Sigve Brekke said at the Mobile World Congress here.
Brekke, however, said the spectrum prices are still way too high.
Previously some of the foreign firms, including the likes of Vodafone, had expressed concerns over regulatory challenges hampering economic development of the country.

On policy front, the DoT had already announced spectrum sharing and trading guidelines, liberalisation policy and clarity on merger and acquisition guidelines. The DoT has also been working on harmonisation of spectrum.
Some of the policies have been stuck for many years but now there is clarity on most of them.

The Telenor CEO, however, said reserve price proposed by Trai for 700 MHz is way too high for telecom operators to pay.
Yesterday, Vodafone also flagged concerns over high spectrum pricing, saying it can play a spoilsport for investment into India ahead of its biggest-ever telecom auction.
Sectoral regulator Trai has proposed a base price for sale of spectrum in seven bands, which could fetch up to Rs 5.36 lakh crore. The sale, which is estimated to fetch more than double the total annual revenue of all telecom companies, that is Rs 2.54 lakh crore, is likely to be held in May/June.

The regulator had recommended a record base price of Rs 11,485 crore per Mhz for 700 Mhz.
Brekke said there should be consolidation in the Indian telecom sector and ideally 5-6 players should be in the market. The competition is further going to increase with the entry of Reliance Jio in the telecom space, he added.