Global mobile trade association body the GSMA is warning that average spectrum prices have not reduced in line with operator revenues over the past decade, putting significant pressure on their ability to invest in essential network infrastructure.
The Global spectrum pricing report was based on reliable spectrum cost data for more than 250 operators in almost 100 countries. The data points from licences provide information on not only current cost, but also historical cost since 2014.
It revealed that while both consumer prices for mobile services and the average cost of spectrum have fallen, the overall cost burden on mobile network operators (MNOs) has actually risen sharply. It noted that spectrum creates a high-cost burden through excessive obligations on speed or coverage, high reserve prices and artificial scarcity, including set-asides.
It calculates that global cumulative spectrum costs now account for 7% of operator revenues, a 63% increase over the past 10 years, while the average revenue generated per megahertz (MHz) of spectrum has declined by 60% over the same period.
And even though costs per MHz have fallen by up to 75% in some bands since 2014, operators have increased spectrum holdings by 80% over the same period to cope with bandwidth demand, driving up the overall cost. Revenue from a gigabyte of data was found to have reduced by 96%.
The report notes that a gigabyte of data is far more affordable today than 10 years ago, with operators experiencing a staggering 96% fall in revenue per GB between 2014 and 2024. However, these falling revenues, when combined with the proportionately high cost of acquiring spectrum, restrict operators’ ability to invest in expanding and improving mobile networks, particularly 4G and 5G.
The report also showed that higher spectrum costs correlate directly with lower network coverage and reduced mobile speeds, impacting consumers and slowing the development of digital economies worldwide. Specifically, it says higher spectrum costs mean reduction in coverage, lower speeds, lower affordability and lower adoption.
The report also highlighted that public policy choices – such as setting artificially high reserve prices, creating artificial scarcity and attaching onerous licence obligations – have often contributed to inflated spectrum costs. In some countries, spectrum costs can reach as high as 25% of operator revenues.
In a call to action, the GSMA urged policymakers to adjust spectrum prices in line with current market conditions and the economic realities faced by operators. With nearly 1,000 spectrum licences set to expire worldwide by 2030, upcoming renewals present a critical opportunity to reset pricing policies to drive investment in the next generation of mobile networks.
“The mobile industry sits at the heart of the digital economy, enabling services and opportunities that transform lives,” said GSMA director general Vivek Badrinath. “But a dollar can only be spent once, and high spectrum costs can choke investment at a time when the need for affordable, reliable connectivity has never been greater.
“Governments and regulators must prioritise spectrum pricing that reflects market realities and fosters long-term digital growth. By ensuring spectrum is affordable, they can unlock faster network expansion, better service quality and greater digital inclusion for all of their citizens.”
