The GSMA has urged the governments and regulators worldwide to reassess spectrum pricing policies, warning that disproportionately high spectrum costs are hampering investment in mobile infrastructure and threatening the expansion of digital economies. In its newly published Global Spectrum Pricing Report, the GSMA highlights that although both consumer prices for mobile services and the average cost of spectrum have fallen, the overall cost burden on mobile network operators (MNOs) has actually risen sharply.
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Spectrum Costs Rising Despite Falling Prices
"The average spectrum prices have not reduced in line with operator revenues over the last decade — putting significant pressure on their ability to invest in essential network infrastructure," the GSMA said while releasing its report on May 15, 2025.
Global cumulative spectrum costs now account for 7 percent of operator revenues, a 63 percent increase over the past ten years. Meanwhile, the average revenue generated per megahertz (MHz) of spectrum has declined by 60 percent over the same period. Although costs per MHz have fallen by up to 75 percent in some bands since 2014, operators have increased spectrum holdings by 80 percent over the same period to cope with bandwidth demand, driving up the overall cost, the GSMA report said.
Operators Struggling Under Financial Pressure
The report underscores the widening gap between falling consumer prices and the rising investment pressures on operators.
"A gigabyte of data is far more affordable today than ten years ago, with operators experiencing a staggering 96 percent fall in revenue per GB between 2014 and 2024. However, these falling revenues, when combined with the proportionately high cost of acquiring spectrum, restrict operators’ ability to invest in expanding and improving mobile networks, particularly 4G and 5G," it added.
"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," said GSMA Director General Vivek Badrinath. "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."
The GSMA links higher spectrum fees with slower network rollouts, weaker coverage, and reduced mobile internet speeds—thereby hindering the development of digital economies worldwide. According to the Global Spectrum Pricing Report, in some countries, spectrum costs reach up to 25 percent of operator revenues, driven by policy decisions such as inflated reserve prices, artificial scarcity, and heavy licence obligations.
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India's Case: High Reserve Prices
The GSMA highlighted that the burden of spectrum costs reaches up to a quarter of operator revenues in some countries, citing India as one such example.
India has traditionally relied on spectrum auctions, but these have frequently been hindered by excessive reserve prices, leading to unsold spectrum and contributing to spectrum scarcity. In other instances, the GSMA noted that high reserve prices contributed to higher final prices paid by operators.
"In recent years, the approach has been revised, and reserve prices have been reduced to avoid further failures. Simultaneously, already accumulated spectrum cost meant operators were able to pay much less per unit of additional spectrum," the GSMA report said in the report released ahead of the World Telecommunication and Information Society Day 2025.
However, the GSMA said that the lower unit prices in recent spectrum "assignments were not sufficient to reverse the trend in spectrum cost build-up."
"The acquisition of new bands to support 5G and improved 4G networks has meant that the spectrum cost burden gradually increased between 2015 and 2023. This currently stands at 26 percent of operator recurring revenues and is among the highest in the world," the report noted, focusing on India.
GSMA suggested that the rationalised spectrum pricing can be seen as a catalyst for recent accelerated 5G rollout and improved network quality in India. "However, the burden of spectrum cost will continue to influence India's progress towards its digital goals for years to come," the report said.
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Impact on Consumers: Slower Speeds
A previous study conducted by GSMA Intelligence found that, in the era of 3G and 4G, high spectrum prices negatively affected consumer outcomes such as speeds and coverage.
As per GSMA's analysis of spectrum cost on consumer outcomes in the 4G and 5G era, a 10-percentage point (pp) higher spectrum cost-to-revenue ratio leads to coverage that is lower by about 4-pp, and a 10-pp higher spectrum cost means a reduction of download speeds by 6 percent, and a reduction in upload speeds by 4 percent.
"Statistical analysis also confirms the vital role of making sufficient spectrum available to enable network rollout: 10 percent more spectrum leads to 1-pp greater coverage based on 4G networks, and 2-pp greater coverage based on 5G networks. 10 percent more spectrum leads to 4 percent higher network download speeds and 2 percent higher upload speeds. Latencies decline by 1 percent for every 10 percent increase in spectrum," the GSMA report said.
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Call to Policymakers
With nearly 1,000 spectrum licences set to expire globally by 2030, the GSMA sees a critical opportunity for policymakers to reset pricing frameworks to drive investment in next-generation mobile networks.
The GSMA urged policymakers to adjust spectrum prices in line with current market conditions and the economic realities faced by operators.
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