Global Spectrum Pricing

Government decisions on spectrum pricing continue to impact mobile coverage and speeds. This latest report on spectrum pricing finds spectrum costs have risen sharply as a percentage of revenues, increasing the cost burden on operators and constraining critical network investments. It makes the case for policymakers to adjust spectrum prices in line with current market conditions and the economic realities faced by operators.

The report builds on data from more than 250 operators in around 100 countries. It takes an in-depth look at trends in spectrum pricing since 2014 and their impact on consumer and enterprise connectivity.

On average, global cumulative spectrum costs now account for 7% of operator revenues, a 63% increase over the past 10 years. In the worst-case scenario, spectrum prices are so high that they can account for 25% of operator revenues.

Increased spectrum cost hurts consumers too. A 10-percentage point higher spectrum-cost-to-revenue ratio leads to coverage that is up to 6 percentage points lower. This effect is observed for both 4G and 5G coverage. There is a similar negative effect on network speeds. A 10-percentage point higher spectrum cost leads to a reduction in download speeds of 8%.