GSMA Calls for Governments to Cut Spectrum Price
The GSMA has issued an urgent plea for governments worldwide to reduce spectrum prices. The organization warns that the burden of high spectrum fees is strangling the telecoms industry and poses a threat to long-term economic development.
In a comprehensive new report, the industry body highlights a concerning trend: spectrum prices have not fallen in line with operator revenues over the past decade. This discrepancy increasingly limits the ability of mobile network operators to adequately invest in critical infrastructure.
Over the years, consumer prices for data services have declined, yet the overall financial burden on operators has sharply increased. According to the GSMA, global cumulative spectrum costs now represent 7% of operator revenues, marking a staggering 63% increase over the last ten years.
Adding to the problem is the fact that average revenue per megahertz has decreased by up to 75% in some bands since 2014. In response to escalating demand for bandwidth, operators have expanded their spectrum holdings by 80% throughout this period, further driving up total costs to the industry.
Meanwhile, consumers have enjoyed substantial benefits, including a significant drop in data prices. The GSMA notes that the cost of a gigabyte of data has dramatically plummeted by 96% between 2014 and 2024.
Vivek Badrinath, GSMA’s Director General, commented on the situation: “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.”
Badrinath emphasizes that governments and regulators must prioritize spectrum pricing strategies that accurately reflect market realities and foster long-term digital growth. By ensuring that spectrum remains affordable, they have the potential to unlock faster network expansion, improved service quality, and greater digital inclusion for all citizens.
This call to action underlines the crucial role that policy-makers play in shaping the digital landscape. By acting responsibly and cutting spectrum prices, governments can set the stage for a more inclusive digital future that benefits everyone.
