The negative impacts of high spectrum prices on consumers can no longer be disputed, according to a new report by trade body the GSMA, which represents the interests of mobile operators worldwide. The report, The Impact of Spectrum Prices on Consumers, confirms that countries with poor spectrum policies – which either inflate spectrum or delay spectrum assignments – are leading to millions of people being left unable to access mobile broadband services or experiencing reduced network quality.
“Spectrum auctions can’t be viewed as cash cows anymore,” said Brett Tarnutzer, Head of Spectrum, GSMA. “Any government that prices spectrum to maximise revenue now does so with full knowledge that its actions will have negative repercussions on citizens and the development of mobile services. We now have clear evidence that shows by restricting the financial ability of operators to invest in mobile networks millions of consumers are suffering.”
The GSMA study is the first to provide strong evidence to directly link high spectrum prices, and certain other spectrum management practices, to negative consumer outcomes, such as slow network rollout, reduced quality of service and poor mobile coverage. The key findings for the period analysed from 2010 to 2017 in both developed and developing countries are:
“These findings have important ramifications for governments and regulators – particularly those betting on 4G and 5G as enablers of economic growth and sustainable development,” added Tarnutzer. “It’s clear that unless we reverse the alarming trend of expensive auctions, this will have damaging consequences for consumers and the development of the digital economy.”