Soaring spectrum costs are hindering global mobile network investment

Steep costs are threatening the expansion and quality of mobile networks worldwide says the GSMA.

According to the industry body’s latest Global Spectrum Pricing Report, mobile operators saw a 96 per cent drop in revenue per gigabyte of data between 2014 and 2024, driven by increased data consumption and falling consumer prices. Despite this sharp revenue decline, the cost of acquiring spectrum has not followed suit.

Instead, spectrum costs are placing growing financial strain on mobile network operators undermining their ability to invest in critical infrastructure, particularly 4G and 5G networks.

Development hindered

The report links higher spectrum prices directly to weaker mobile coverage and slower data speeds, hindering digital development across global economies.

The  price per MHz of spectrum has fallen by up to 75 per cent in some bands since 2014, but operators have had to expand their spectrum holdings by 80 per cent to meet surging bandwidth demand.

This has caused the overall cost burden to rise, with spectrum expenses now accounting for seven per cent of operator revenues — a 63 per cent increase over the past decade. Meanwhile, revenue generated per MHz has plunged 60 per cent over the same period.

GSMA Director General Vivek Badrinath warned that unsustainable spectrum pricing is jeopardising digital progress:

“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.”

Pricing models

Badrinath called on governments and regulators to adopt pricing models that reflect market conditions and support long-term growth. He stressed that affordable spectrum is key to accelerating network rollout, improving service quality, and advancing digital inclusion.

The report also highlights how public policy missteps — including inflated reserve prices, artificial spectrum scarcity, and rigid licensing conditions — have led to inflated costs in some markets, with spectrum expenses reaching up to 25% of operator revenues in extreme cases.

With nearly 1,000 spectrum licences due to expire by 2030, the GSMA is urging policymakers to use the renewal window as a chance to reset pricing frameworks and enable the next wave of mobile innovation.

“Affordable spectrum pricing,” the GSMA concludes, “is essential to unlock the full potential of mobile networks and ensure no one is left behind in the digital age.”