Kathmandu – The GSMA urges the policymakers across globe to adjust spectrum prices in line with current market conditions and the economic realities faced by operators.

Releasing its latest ‘Global Spectrum Pricing Report’,  GSMA highlighted that 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.

With nearly 1,000 spectrum licenses set to expire worldwide by 2030, upcoming renewals present a critical opportunity to reset pricing policies to drive investment in the next generation of mobile networks, the report stated. 

The report shows that, whilst 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.

Global cumulative spectrum costs now account for 7 percent of operator revenues, a 63 percent increase over the past ten years, the report highlighted. 

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. 

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.

The report shows that higher spectrum costs correlate directly with lower network coverage and reduced mobile speeds, impacting consumers and slowing the development of digital economies worldwide.

Vivek Badrinath, director general of the GSMA, said, '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.' 

'Governments and regulators must prioritize 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 Global Spectrum Pricing Report also highlights that public policy choices — such as setting artificially high reserve prices, creating artificial scarcity, and attaching onerous licence obligations — have often contributed to inflated spectrum costs. In some countries, spectrum costs can reach as high as 25 percent of operator revenues.