The GSMA has found that mobile operators are struggling with spectrum costs, and those costs are holding back necessary investment to improve network performance.
On average, the GSMA reports that consumers pay roughly 38% less for mobile services than they did ten years ago. That’s good news for household budgets, but it masks serious pressures on the businesses that deliver those services.
Between 2014 and 2024, the revenue operators earn per gigabyte of data fell by about 96%. When income per gigabyte collapses while core costs remain high or increase, operators face sharp constraints on their ability to invest in network expansion and upgrades.
High spectrum costs compounded with falling data revenues make it difficult for operators to fund improvements. The GSMA’s analysis shows that expensive spectrum doesn’t just squeeze balance sheets; it can translate into weaker coverage and slower download speeds for consumers, limiting digital progress and everyday user experience.
Vivek Badrinath, Director General of the GSMA, said: “The mobile industry sits at the heart of the digital economy, enabling services and opportunities that transform lives. 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.”
The report quantifies the impact: if spectrum costs increase by 10 percentage points as a share of an operator’s ongoing revenue, 4G and 5G coverage can fall by up to 6 percentage points and average download speeds can decline by as much as 8%. These figures underline how crucial sensible spectrum pricing is to ensuring widespread, affordable connectivity.
“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,” Badrinath added.
The GSMA study also highlights the benefits of increasing spectrum availability. Granting operators an additional 10% of spectrum can improve coverage for around 2% more people and boost download speeds by about 4%. Those gains show that policymakers should consider the broader societal value of spectrum and ensure it’s offered at reasonable prices.
How policy decisions inflate spectrum costs
The GSMA’s Global Spectrum Pricing Report examines how regulatory and government choices drive spectrum prices up. The report points to factors such as setting overly high reserve prices, creating artificial scarcity, and imposing burdensome licence conditions as frequent causes of inflated costs.
The consequences are significant: in some markets, spectrum expenses can consume up to 25% of an operator’s revenue, diverting funds that could otherwise be invested in network quality and reach.
Where spectrum is deliberately constrained, the study found operators paid roughly 50% more to acquire licenses. High reserve prices set by regulators often determine the final sale price; in many cases, licences are sold at those initial high levels rather than through competitive bidding that would reveal a market-based price.
In 37% of the spectrum sales reviewed by the GSMA, the final price simply matched the high starting price. That outcome suggests reserve prices should be set at levels that allow genuine competition to establish fair market value and avoid leaving valuable spectrum unused.
A chance to improve the performance of mobile networks
There is a timely opportunity to address these issues. Between 2025 and 2030, nearly 1,000 spectrum licences across 110 countries are set to expire. The GSMA urges policymakers to treat licence renewals and upcoming auctions as a chance to reset pricing policies in ways that encourage investment in next-generation networks.
The GSMA recommends that governments and regulators reassess spectrum pricing to reflect market conditions and the financial constraints facing operators. The study offers guidance on pricing new spectrum and renewing licences, stressing the need to consider the incremental costs operators face when licences carry specific investment obligations or other burdensome requirements.
As demand for mobile data continues to grow, it is increasingly important for spectrum managers and policymakers to weigh the public value of spectrum. Pricing that enables operators to invest will support better coverage, faster speeds, and broader digital inclusion for communities everywhere.
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