
Artificially Inflating Prices in Auctions Threatens Quality & Affordability of Mobile Services
London: As 5G spectrum auctions pick up pace globally, the GSMA today raised concerns into some auctions' design artificially inflating prices, or inefficiently distributing already scarce spectrum resources, which risk harming consumers.
Auctions can and do fail when poorly designed, said Brett Tarnutzer, Head of Spectrum, GSMA. We're seeing a worrying trend of badly run spectrum awards that could seriously impact the potential of 5G before we get started. It's time for policymakers to work more closely with stakeholders to enable more timely, fair and effective awards.
To help governments and regulators guarantee affordable, high quality mobile connectivity from spectrum awards the GSMA published today an Auction Best Practice' paper. The paper highlights some key concerns from recent 4G and 5G spectrum awards and offers recommendations. This includes addressing a trend towards governments making decisions that artificially inflate spectrum prices, which risk limiting subsequent network investment and thus harming consumers. These bad decisions include artificially restricting the amount of spectrum operators can access, through set-asides or by poorly chosen lot sizes, or by setting high reserve prices.
The paper outlines recommendations including:
The top priority for spectrum auctions should be to support affordable, high quality mobile services - not to maximise revenues;
Auctions should not be the only award process considered, as they are not always suitable;
Assign a sufficiently large amount of spectrum and publish roadmaps to support high quality mobile services. Set-asides for vertical sectors or new entrants may threaten how much operators can access and also risk inflating spectrum prices;
The auction design should not create unnecessary risk and uncertainty for bidders; and
Poorly chosen lot sizes or inflexible packages of spectrum lots risk inefficient outcomes.
According to GSMA Intelligence, the socio-economic impact of 5G will be $2.2 trillion over the next 15 years, with key sectors such as manufacturing, utilities and professional/financial services benefiting the most from the new technology. By 2025, 5G is also forecast to account for around 30 per cent of connections in markets such as China and Europe, and around half of the total in the US.
Timely, fair and effective spectrum awards are key to delivering the full potential of 5G. Early movers include Finland, Italy, Spain, South Korea, United Arab Emirates, and United Kingdom who became amongst the first to award 5G spectrum last year. The number of countries who have assigned vital 5G spectrum is rapidly increasing this year, with Austria, Canada, Denmark, Germany, Hong Kong, Japan, Saudi Arabia, Switzerland and the USA already completing awards. More than 10 countries have announced further plans to assign spectrum in 2019 including France, India, Mexico, Greece and Romania.
This is crucial time in the development of 5G, added Tarnutzer. Spectrum is essential fuel for mobile networks and its ineffective use will only lead to bad consequences for consumers. The most important objective of awarding frequencies should not be about making the most money, but rather about ensuring consumers benefit from the best mobile connectivity.
The GSMA's Auction Best Practice' paper is available in English here, in French here and in Spanish here.
-ENDS-
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators with over 350 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los Angeles and Shanghai, as well as the Mobile 360 Series of regional conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
Media Contacts:
For the GSMA
Beau Bass
M +44 (0) 79 6621 6344
beau.bass@webershandwick.com
GSMA Press Office
pressoffice@gsma.com
Like what you read? Share.
Europe Stories
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
16/01/2026
The start of a new year brings fresh possibilities. Whether you're diving in with big goals or simply setting new intentions, audiobooks can bring inspirati...
16/01/2026
In 2025 we launched the Spotify Partner Program to give creators more ways to tu...
15/01/2026
The SGL Carbon site in Bonn has a long tradition of training. For many years, young talent has been successfully trained here, regularly achieving excellent exa...
15/01/2026
The JEC Composites Innovation Awards annually honor the most innovative and ambi...
15/01/2026
X-energy Reactor Company, LLC ( X-energy ) and SGL Carbon LLC ( SGL ) have signed a 10-year framework agreement to provide graphite for the deployment of X-ener...
15/01/2026
RT is tonight announcing that Mari Hurley has decided to leave her role as RT 's Chief Financial Officer to take up a new position outside RT . Mari will r...
15/01/2026
15 Jan 2026
VEON's Kyivstar Reaches 3.0 million Customers with Starlink Dir...
15/01/2026
Views to free streaming service U grew by 15%, average monthly active users by 23% and registrations by 18%
UKTV's channels achieved record viewing share, ...
15/01/2026
Thursday 15 January 2026
Sky Sports to show Final Stage of inaugural FIFA Women's Champions Cup
Sky and FIFA have agreed an exclusive new partnership whi...
15/01/2026
Thursday 15 January 2026
The official trailer for the second season of Seth Mac...
15/01/2026
Wuppertal January 15, 2026
Riedel RefCam Takes Center Court in German Basketba...
15/01/2026
Arvato Systems Named Launch Partner for AWS European Sovereign Cloud
As a launch partner for the AWS European Sovereign Cloud, Arvato Systems enables customer...
14/01/2026
Staines-upon-Thames, UK, 13th January, 2026 ITV, one of the UKs leading broadcasters, has selected Yospace, the global leader in Dynamic Ad Insertion (DAI), to ...
14/01/2026
Steiger Media's adoption of Calrec's compact Argo M console not only makes its innovative new hybrid truck faster, more efficient, and agile, but also e...
14/01/2026
Press Release: The Boston Globe Names Cartesian a Top Place to Work in 2025
January 14, 2026
News
Cartesian - January 14, 2026 - EINPresswire.com - Sp...
14/01/2026
Comscore and Marcus Theatres Announce Five-Year Extension for Cinema ACE and Ent...
14/01/2026
Comscore and Santikos Entertainment Announce Five-Year Circuit Wide Commitment t...
14/01/2026
Wednesday 14 January 2026
Sky News announces Cathy Newman to lead flagship new political programme
Sky News today announces that award-winning journalist and ...
14/01/2026
The first stamp of An Post's 2026 Stamp Programme, marking 100 Years of Broadcasting, was unveiled at the GPO by Patrick O'Donovan TD, Minister for Cult...
14/01/2026
It's official! Beverley Callard has landed in Carrigstown. The beloved actor, known for her unforgettable roles and iconic screen presence, is joining the c...
13/01/2026
Independent media in Brazil and Colombia is facing an urgent crisis of traditional business models alongside a deteriorating security environment, according to ...
13/01/2026
Luxembourg, December 17, 2025 - SES S.A. ( SES or the Company ), a leading spa...
13/01/2026
Written and executive produced by Steve Lightfoot and Angela LaManna, produced b...
13/01/2026
New updates to Hitmaker Expansion from Celemony and Softube Edit pitch-perfect vocals with Melodyne Essential and get radio-ready guitar tones from Softube...
13/01/2026
Live broadcasts from RT 2FM Breakfast with Carl, Roz & Aisling, RT Radio 1 Tod...
12/01/2026
Spotify's new co-CEOs, Alex Norstr m and Gustav S derstr m, start off the new year with a message of renewed leadership, creative responsibility, and what...
12/01/2026
At Spotify, we listen to a lot of music. And every year, our global editors and artist partnerships teams come together to spotlight the emerging voices we beli...
12/01/2026
Spotify's global editors and Songwriter & Publisher Partnerships team spend their days immersed in new music, tracking the writers behind the songs breaking...
12/01/2026
Rohde & Schwarz opens larger office in Japan and increases its support for the J...
12/01/2026
X-Rite and Rhopoint Launch Rhopoint PANTORA Aesthetix to Streamline Creation of...
12/01/2026
12 Jan 2026
VEON's Kyivstar Launches 5G Pilot in Lviv Lviv, January 12, 2026 - VEON, a global digital operator (Nasdaq: VEON), today announces that Kyivsta...
12/01/2026
Monday 12 January 2026
The ultimate betrayal: Harry and Jamie Redknapp, Paul Me...
12/01/2026
Rohde & Schwarz opens larger office in Japan to increase its support for the Jap...
12/01/2026
Welcome to the AVECO team: introducing new members of management
At AVECO, we are continuing to implement our #newAVECO strategy, which aims to build an even s...
12/01/2026
For the first time in the nine-year history of Dancing with the Stars, the first...
10/01/2026
This year, podcasts are making their Golden Globes debut with a new category honoring the medium's leading shows and creators. To mark the occasion, Spotify...
09/01/2026
RT Player has 157 million streams, up 10% year-on-year
An increase on 2024, RT...
09/01/2026
RT 2FM has today announced the highly anticipated list of 2FM Rising Artists for 2026, kicking off 2FM Rising week for the eighth year on The Tracy Clifford Sh...
09/01/2026
RT to Host the 2026 RTS Ireland Awards
Thursday, 16 April 2026 | Dublin Royal Convention Centre
The RTS Ireland Television Awards 2026 | Gradaim RTS 2026 | R...
08/01/2026
An evidence-based analysis on disinformation and information manipulation in Sudan's ongoing conflict is published today. (January 8th 2026).
Thomson Found...
08/01/2026
In 2025 we launched the Spotify Partner Program to give creators more ways to tu...
08/01/2026
On Wednesday in Los Angeles, Spotify welcomed creators and press to a brunch cel...
08/01/2026
TSA awards Rohde & Schwarz contract for advanced airport screening ahead of Socc...
08/01/2026
The review looks back at DPA's miniature microphone development over the years. It compares the evolving technologies from the original mics through CORE an...
08/01/2026
Comscore Launches Audio Targeting and Measurement Capabilities with The Trade De...
08/01/2026
Tonight, on RT Prime Time at 9:35pm on RT One and RT Player
Tonight, Prime T...