
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...
05/11/2025
On Monday night, Ed Sheeran and Spotify lit up The Royal Dublin Society in Dublin for a one-night-only performance. The occasion? The third installment of Billi...
05/11/2025
Cumbia has long been woven into daily life in Argentina, and its popularity on S...
05/11/2025
La cumbia forma parte del d a a d a de los argentinos desde siempre, y su popula...
05/11/2025
Earlier this year, our in-house publishing imprint, Spotify Audiobooks, put out ...
05/11/2025
Wednesday 5 November 2025
To view this content, please enable our use of cookie...
05/11/2025
Wednesday 5 November 2025
To view this content, please enable our use of cookie...
05/11/2025
Rohde & Schwarz Mobile Test Summit 2025 on the future of wireless communications...
05/11/2025
Wuppertal November 5, 2025
Riedel RefCam and Easy5G to Make Handball Debut at the Men's EHF EURO 2026The European Handball Federation (EHF) will introduce...
05/11/2025
Comscore and Polaris I/O Partner to Automate Audience Insights in MarketView for...
05/11/2025
New schedule will be live on-air Monday 10 November
Brand-new Today with David McCullagh from 9am
Oliver Callan in all-new extended show from 11am to 1pm
Kie...
05/11/2025
Explore the future with Science Week on RT
Dive into a week of innovative, themed programming and content across RT television, radio and online
Includes a ...
05/11/2025
Get ready for six weeks of United FC, a brand-new, feel-good teen docuseries kic...
04/11/2025
Today, we announced our third quarter 2025 earnings, marking strong momentum as we surpassed 700 million Monthly Active Users and achieved double-digit subscrib...
04/11/2025
Idag rapporterar vi v rt resultat f r det tredje kvartalet 2025, vilket markerar en stark och fortsatt tillv xt d vi passerade 700 miljoner m natliga aktiva an...
04/11/2025
Comscore Reports Third Quarter 2025 ResultsRESTON, Va., November 4, 2025 Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting and evalu...
04/11/2025
Damien Moloney as Jim Bergerac
As filming wraps on the highly anticipated second series of Bergerac(6x60'), UKTV today unveils a selection of first look im...
04/11/2025
Tuesday 4 November 2025
To view this content, please enable our use of cookies....
04/11/2025
From the recent SMPTE Media Technology Summit in Pasadena, with FilmLight Image Engineer, Daniele Siragusano, and Research Engineer, Julius Tschannerl.
Matchin...
04/11/2025
Begins Thursday November 6 on RT One and RT Player at 10:15pm
Camogie: Inside...
03/11/2025
Harmonic's cOS Virtualized Broadband Platform Will Further Enhance Broadband...
03/11/2025
Monday 3 November 2025
To view this content, please enable our use of cookies. ...
03/11/2025
Rohde & Schwarz acquires open source intelligence specialist Munich Innovation L...
03/11/2025
Rohde & Schwarz launches revolutionary super wideband mobile network scanner, se...
03/11/2025
ESA, MediaTek, Eutelsat, Airbus, Sharp, ITRI, and R&S announce world's first...
03/11/2025
Nokia and Rohde & Schwarz collaborate on AI-powered 6G receiver to cut costs, ac...
03/11/2025
A4ESSOR and OCCAR sign new procurement contract to advance development of intero...
03/11/2025
Sitep Australia joins Rohde & Schwarz team for Hunter class frigate communicatio...
03/11/2025
Red Seat Ventures and The 33rd Team Announce Exclusive Sales Partnership Red Seat Ventures to Spearhead Sales Representation for The 33rd Team's Dynamic S...
03/11/2025
They've made that decision and ruined an awful lot of people's lives.
...
01/11/2025
aconnic AG (ISIN: DE000A0LBKW6), Munich, has published the Financial Report for ...
31/10/2025
The review highlights DPA 4055 Kick Drum Microphone for its compact design, ease of placement, and authentic tone that captures the true character of the drum p...
31/10/2025
The RT Raidi na Gaeltachta Award 2025 will be presented to journalist P il n N Chiar in at the Oireachtas na Samhna in Belfast tomorrow, Saturday 1 November,...
31/10/2025
RT lyric fm is calling for choirs across Ireland to share their festive music-m...
31/10/2025
Three awards were presented to RT Raidi na Gaeltachta broadcasters at the Oire...
31/10/2025
RT continues its proud tradition of championing Ireland's vibrant arts and cultural landscape through its RT Supporting the Arts initiative. This November...
31/10/2025
RT selects Irish independent production company to produce Christian Worship on...
30/10/2025
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...
30/10/2025
TIS THE SEASON TO GET PUNNY!
U&GOLD LAUNCHES ITS ANNUAL SEARCH FOR THE UK'S...
30/10/2025
Rohde & Schwarz enables MediaTeks 6G waveform verification with CMP180 radio com...
30/10/2025
Fox Corporation Reports First Quarter Fiscal 2026 Financial Results NEW YORK, NY, October 30, 2025 - Fox Corporation (Nasdaq: FOXA, FOX; FOX or the Company...
30/10/2025
Tubi Media Group and Audiochuck Announce Exclusive Partnership Tubi Media Group Enters into a Multi-Year Ad Partnership Deal with Ashley Flowers' Award-Wi...
30/10/2025
Comscore Appoints a new Country Manager for APACNEW DELHI, INDIA, October 30, 2025 Comscore (Nasdaq: SCOR), a global leader in measuring and analysing consum...
30/10/2025
RT Concert Orchestra in November and December
Collaborations with RT Radio 1's Sunday Miscellany (2 December) and RT 2FM's Late Breakfast (9 Decembe...
30/10/2025
Johnny B and Johnny Smacks are back tonight for the second episode of the new se...
30/10/2025
First look of Jon Bon Jovi's interview with Patrick Kielty
Jon Bon Jovi is ...
29/10/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
29/10/2025
NAB New York 2025 Preview | October 22-23 | Booth 544 | Javits Center, New York We're looking forward to meeting up with customers and partners at NAB New Y...
29/10/2025
October 29 2025, 17:00 (PDT) Hyundai Motor Group Brings Dolby Atmos to Elexio, ...
29/10/2025
Wuppertal October 29, 2025
Riedel Communications Appoints Ulrich Voigt as Dire...