
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.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
06/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/08/2026
At this year's SET EXPO, PlayBox Neo will present recent innovations across its PlayBox Neo Suite and integrated range of broadcast media solutions. By show...
06/08/2026
Live demo at IBC2026 VisualOn Booth, Hall 5, Stand A55
Amsterdam, Netherlands Modern Streaming Solutions Private Limited, a rising force in India's dig...
06/08/2026
Screen Australia and YouTube Australia fund five new teams through eleventh Skip...
06/08/2026
How Karukera Studio Built a Media Production Hub with SNS EVO
Melanie Ciotti August 5, 2026
0 Comments
Hero images displays Karukera Studio in Sainte-...
06/08/2026
NHK drama series Rosanjin no Kamado shot on PYXIS 6K
Brie Clayton August 5, 2026
0 Comments
Blackmagic PYXIS 6K and DaVinci Resolve Studio capture the...
06/08/2026
Camera Match: AutoSetup 3d Plugin / script for Photomontages- Cinema 4D
Jamie Cardoso August 5, 2026
0 Comments
If you do any kind of Architectural Vi...
05/08/2026
Thomson's Climate Crisis Toolkit for Media in Tanzania is being included in a new virtual library designed to ensure accurate and engaging storytelling arou...
05/08/2026
RSNs, teams, leagues, and streamers explore the present and future of local spor...
05/08/2026
As sports-production workflows generate larger volumes of unstructured data and ...
05/08/2026
Three aspiring broadcasters will contribute on-camera and inside the production ...
05/08/2026
Adam Meeks attends the premiere of his film Union County, an official selection of the 2026 Sundance Film Festival. (Photo by Jemal Countess/Sundance Institut...
05/08/2026
Major discounts, updates & remakes of early VST plug-ins
Steinberg are currently celebrating two significant anniversaries, with this week marking the 30th ...
05/08/2026
Flagship monitor range gains wireless remote control
KRK's flagship studio monitor range has just been upgraded, with three new fifth-generation models ...
05/08/2026
Rohde & Schwarz launches next phase of Airways New Zealand Air Traffic Control s...
05/08/2026
Rohde & Schwarz presents the R&S MP007, a man-portable tactical direction findin...
05/08/2026
Advertisers invested $53.6 million in the retirement sector in the last 12 month...
05/08/2026
Nielsen CMI and Ad Intel data reveals who's visiting IKEA, where else they s...
05/08/2026
Media buyers and sellers can now compare deduplicated campaign reach across computer, mobile, connected TV and linear TV across all measurable CTV publishers in...
05/08/2026
Stranger Things' Leads All Streaming Titles with 23.3 Billion Minutes in Fir...
05/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/08/2026
QuickLink, the leading provider of award-winning video production and remote guest integration solutions, announces the appointment of Kane Peterson to its Nort...
05/08/2026
XR research reveals marketers believe they have control over production costs, yet budget overruns, campaign delays and creative cutbacks remain commonplace
Se...
05/08/2026
Game On Live Studio Uses Blackmagic Design to Stream Tropical 7s
Brie Clayton August 4, 2026
0 Comments
Every match of world's largest youth rugby...
05/08/2026
Chris Fitzgerald to Head TDC's Experiential Growth
Brie Clayton August 4, 2026
0 Comments
Technical Direction Company promotes Chris Fitzgerald to...
05/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/08/2026
Profuz Digital is set to launch a powerful upgrade to its Profuz LAPIS digital media management platform at IBC this year at Stand 8.A88. France Galop, Canal+ F...
05/08/2026
KRK, a Gibson brand and leader in professional studio monitoring for nearly four decades, launches its new V Series Five Studio Monitors, the latest evolution o...
05/08/2026
Network expansion, continued customer growth and stable financial performance characterized Magyar Telekoms business results for the first half and second quart...
05/08/2026
Wednesday 5 August 2026
The Sky Foundation launches new bursary programme to su...
05/08/2026
Charlie Sheen Launches Mostly Sheenius in Partnership with Red Seat Ventures After Decades as One of the World's Most Recognizable and Interviewed Celebr...
04/08/2026
Live production in the cloud is a growing trend across the industry, and Major L...
04/08/2026
LAFC co-managing owner will succeed Don Garber on Jan. 1, 2027, as league prepar...
04/08/2026
In 2022, when the PGA TOUR was breaking ground on its new, state-of-the-art broa...
04/08/2026
Provided by POVORA, the new camera angle offers a dealer's-eye view of the c...
04/08/2026
Spiideo will provide the camera setup, with NEP handling broadcast integration and off-site video operations...
04/08/2026
Production team streamed more than 750 youth rugby matches using ATEM switchers,...
04/08/2026
Agreement gives KTC early access to NDI's Advanced SDK for integration across commercial displays, digital signage, and interactive panels...
04/08/2026
Twelve projects across four categories recognize collaborative work in productio...
04/08/2026
Multi-year agreement will introduce SkeleTRACK, semi-automated offside, automate...