Following Govt’s decision of reduction in base price of spectrum in upcoming March auction, Telenor expects that further price cut is required for the sustainability and growth of the telecom sector. Earlier Sistema Shyam Teleservices also welcomes the price cut move (50% reduction in CDMA airwave base price), but expressed the same view that more price cut is necessary.

“The government has been giving right signals to industry leaders. We are hopeful that the pricing issues would be resolved and we will wait for March. But as the indications stand, the reserve price is likely to be brought down,” Telenor’s President and CEO Jon Fredrik Baksaas said. Baksaas, who was in Davos to attend the World Economic Forum, said Telenor would bring pricing issue to “the attention of decision makers”. He, however, refused to elaborate.

The government is expected to kick-off the second round of auction on March 11. The government has cut the reserve price for spectrum auction by 30 per cent, following a lack in interest from telecom operators.