The impact of spectrum prices on consumers
Please sign in or register for a free public account to access this report.
The radio spectrum that governments license to operators is central to the quality and affordability of mobile broadband services. However, some government policies – inadvertently or not – result in high prices being paid to access spectrum. This study presents strong, new evidence that high spectrum prices can cause negative consumer outcomes, including lower coverage levels and slower data speeds.
Mobile networks are regularly upgraded to offer improved benefits to consumers in terms of service quality and cost – for example, better coverage and faster and more affordable data. However, there are significant variations in these metrics between countries. The report assesses whether high spectrum prices, and other aspects of spectrum management, can be a cause of such differences in service quality and cost. Governments and regulators can therefore take this into account when planning spectrum assignment approaches.
This study is, to our knowledge, the first that uses econometric models to consider the impact of spectrum pricing on a broad range of consumer outcomes. The analysis is applied to both developed and developing countries. The results show there is significant evidence to suggest a causal link between high spectrum prices, and certain other spectrum management decisions, and negative consumer outcomes.
The findings have important ramifications for governments and regulators – particularly those betting on 4G and 5G as enablers of growth and sustainable development.
Related research
The future of road transportation: benchmarking spectrum and regulatory readiness for connected vehicles
GSMA Intelligence has benchmarked regulatory readiness for connected vehicles across 15 markets, using key indicators such as the presence of V2X policies and spectrum allocation for safety and non-safety ITS applications. The assessment reveals an average index score of 84 and a fragmented landscape with different levels of readiness for connected-vehicles deployment. Despite the promising opportunities, significant challenges remain, including those related to connectivity technologies, spectrum allocation, safety, privacy and security. Addressing these issues will require a number of regulatory frameworks to be developed and refined.
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.
Network Sunsets, Q1 2025
This quarterly series leverages GSMA Intelligence data on network sunsets to identify the key trends and understand the future. The report outlines the latest developments in network sunsets. The data provided here covers network sunsets by year, technology and region. The report also spotlights the momentum in 2G/3G network sunsets in the context of total active 2G/3G networks globally.
Authors
How to access this report
Annual subscription: Subscribe to our research modules for comprehensive access to more than 200 reports per year.
Enquire about subscriptionContact our research team
Get in touch with us to find out more about our research topics and analysis.
Contact our research teamMedia
To cite our research, please see our citation policy in our Terms of Use, or contact our Media team for more information.
Learn moreRelated research
The future of road transportation: benchmarking spectrum and regulatory readiness for connected vehicles
GSMA Intelligence has benchmarked regulatory readiness for connected vehicles across 15 markets, using key indicators such as the presence of V2X policies and spectrum allocation for safety and non-safety ITS applications. The assessment reveals an average index score of 84 and a fragmented landscape with different levels of readiness for connected-vehicles deployment. Despite the promising opportunities, significant challenges remain, including those related to connectivity technologies, spectrum allocation, safety, privacy and security. Addressing these issues will require a number of regulatory frameworks to be developed and refined.
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.
Network Sunsets, Q1 2025
This quarterly series leverages GSMA Intelligence data on network sunsets to identify the key trends and understand the future. The report outlines the latest developments in network sunsets. The data provided here covers network sunsets by year, technology and region. The report also spotlights the momentum in 2G/3G network sunsets in the context of total active 2G/3G networks globally.
- 200 reports a year
- 50 million data points
- Over 350 metrics