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
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
15/09/2025
Global K-Pop sensation aespa is redefining what it means to be rich with the r...
15/09/2025
Every day, millions of people around the world turn to Spotify to enjoy the audi...
15/09/2025
After months of intensive planning and implementation, Brembo SGL Carbon Ceramic...
15/09/2025
Unique sports content orchestration platform builds momentum among SES's cus...
15/09/2025
-- Opens door to growth in renewable energy New Delhi, India - 15th September -- Global business and industry leaders from around the world are joining technol...
13/09/2025
Harmonic's Software-Based XOS Advanced Media Processor Provides Unparalleled Efficiency and Unlocks New Business Models SAN JOSE, Calif. - Sept. 13, 2025 -...
12/09/2025
For fans, we know how important it is to stay plugged into music culture and dis...
12/09/2025
Link ping, Sweden and Shipley, United Kingdom, September 12, 2025 - Agama, the expert in video observability and analytics for service quality and customer expe...
12/09/2025
Feature-length retrospective from Studio Crook to air in 2026
Sir David Jason returns to the nation's favourite comedy channel, U&GOLD, for Open All Hours:...
12/09/2025
Friday 12 September 2025
The Boomtown Rats, Nyah Grace, Soweto Kinch, Royal Ballet and Madness also announced to perform at the ceremony on Tuesday
Sky today ...
12/09/2025
Wuppertal September 12, 2025
Riedel Unveils Ultra-Light Bolero Mini Wireless Intercom BeltpackAt IBC2025 in Amsterdam, Riedel Communications unveiled Bolero M...
12/09/2025
Wuppertal September 12, 2025
Riedel Communications Acquires hi human interfaceRiedel Communications today announced the acquisition of hi human interface fro...
12/09/2025
CORE+ virtually removes distortion, setting a new standard for church sound and giving worship teams the clarity and confidence they need.
Read the full artic...
12/09/2025
The Late Late Show is back with a bang after the summer break, and Patrick Kielt...
12/09/2025
The World Athletics Championships, Ireland v France in the Women's Rugby World Cup quarter-final, the Irish Champions Festival, and two Sports Direct Men...
12/09/2025
The Records Show starts Sunday at 6.30pm on RT One and RT Player.
Katie Hanno...
11/09/2025
RADAR, Spotify's program for emerging talent, recently hit a major milestone...
11/09/2025
Link ping, Sweden, September 11, 2025 - Agama, the expert in video observability & analytics for service quality and customer experience, announced today the la...
11/09/2025
Under the USD 89.6 Million award, SES Space & Defense will provide global commer...
11/09/2025
Leading Balkan DTH provider adds capacity to consolidate its m:Sat TV platform at 23.5 degrees East and serve more customers across the region
Luxembourg, 11 S...
11/09/2025
UKTV's free streaming service U launches on Sky Q
Free streaming service U has launched on Sky Q in the UK, UKTV and Sky confirm today, expanding the footp...
11/09/2025
From the discreet 2061 lavaliers to 4099 and 4011 mics, the setup delivered clean, natural sound in one of the most challenging broadcast environments.
Read th...
11/09/2025
From rugged build quality to natural, detailed sound, the verdict is clear: big performance can come in a very small package.
Read the full review here!...
11/09/2025
Tonight on Prime Time
RT One and RT Player at 9:35pm
Tonight RT Prime Time...
11/09/2025
RT Statement: 2026 Eurovision Song Contest
At the General Assembly of the European Broadcasting Union (EBU) in July, a number of EBU members raised concerns ...
10/09/2025
Lossless on Spotify Premium is here.
Lossless audio has been one of the most a...
10/09/2025
The Television Will Be Revolutionised Sep 10, 2025
Written by Sunit Kotecha, Director of Delivery and Operations, YouView
2025 marks a century since the f...
10/09/2025
First of Spains F110 frigates get future-ready with Rohde & Schwarz communicatio...
10/09/2025
Harmonic's cOS Platform Supports DOCSIS and Fiber, Enabling Midco to Deliver Reliable Multi-Gigabit Connectivity to Subscribers SAN JOSE, Calif. - Sept. 10,...
10/09/2025
RT brings three days of live radio, live entertainment, live news, live weather, personal appearances, and more
Join RT Radio 1: Morning Ireland, The Oliver ...
09/09/2025
Since 2020, Spotify's RADAR program has been a launchpad for emerging talent...
09/09/2025
In 2020, Spotify launched RADAR with a clear mission: to identify, nurture, and ...
09/09/2025
If you're on BookTok, you know the drill. You scroll, you tap, and suddenly your To Be Read list is overflowing with trending must-reads. Not unlike Spoti...
09/09/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
09/09/2025
Harmonic's VOS360 Ad SaaS Enables Personalized Ad Delivery and Seamless Integration with the Ad Tech Ecosystem SAN JOSE, Calif. - Sept. 9, 2025 - Harmonic ...
09/09/2025
St. Luke's Episcopal Church in New Jersey needed audio that truly connects and they found the answer.
Read the full case study here!...
09/09/2025
From AI-driven sound design to adaptable systems and uncompromising audio quality, the discussion highlights how innovation is shaping the future of performance...
09/09/2025
The conversation covers DPA's natural, uncolored sound, how to choose the right mic for any application and the company's latest innovations including C...
09/09/2025
From the origins of CORE to the latest CORE+ upgrade, the article explores how DPA minimizes distortion, expands dynamic range and ensures clarity at every SPL ...
09/09/2025
September 9 2025, 07:22 (PDT) Dolby Revolutionizes Entertainment on Four Wheels...
09/09/2025
The Autumn Schedule has begun on RT Raidi na Gaeltachta, with a feast of music, entertainment, news and current affairs programmes as well as an interesting s...
08/09/2025
The company continues to focus on its own training programs. Recently, 20 new ap...
08/09/2025
How an MVP-first approach helps you move faster, stay flexible, and deliver smarter.
Too often, media technology projects aim to solve everything at once ma...
08/09/2025
Fox Corporation Announces Resolution of Murdoch Family Trust Matter New York, NY and Los Angeles, CA - September 8, 2025 - Fox Corporation ( FOX or the Comp...
08/09/2025
Fox Corporation Announces Secondary Offering of Class B Common Stock New York, NY, and Los Angeles, CA - September 8, 2025 - Fox Corporation ( FOX or the Co...
08/09/2025
Fox Corporation Announces Pricing of Secondary Offering of Class B Common Stock New York, NY, and Los Angeles, CA, September 8, 2025 Fox Corporation ( FOX ...
08/09/2025
PantoneLIVE Adds New Color Libraries to Meet Growing Demand for Two-Piece Alumin...
Artificially Inflating Prices in Auctions Threatens Quality & Affordability of Mobile Services
