
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 ...
21/10/2026
Three investigative journalists have been chosen as the finalists for the 2026 Thomson Foundation Young Journalist Award. The successful candidates from Nigeria...
21/10/2026
The lifelong Terps fan is making the most of his dream school, producing and directing broadcasts while gaining professional reps across the Washington, DC, spo...
21/10/2026
University of Washington Intercollegiate Athletics has brought its new Sundodger...
21/10/2026
The Pac 12 has appointed its first ever Chief Commercial & Growth Officer, compl...
21/10/2026
The Wildcats' $875 million home blends an intimate 35,000-seat design with 3...
21/10/2026
M-Tron Select & Axxess free until 1 December 2026
Soft synth gurus GForce Software have just announced that they are relaunching with updated branding, a fr...
21/10/2026
A simplified approach to multiband compression
DDMF's latest plug-in has been designed to simplify the process of applying multiband compression, and in...
21/10/2026
Full-size keys, more controls and XYZ touch matrix.
Arturia have announced the release of MiniFreak 49, a larger version of their six-voice hybrid synthesiz...
21/10/2026
SBS appoints Kathryn Fink as Chief Content Officer in new executive structure
21 October, 2026
Media releases
SBS has announced a new executive structure a...
21/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
21/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
21/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
21/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
21/10/2026
Clear-Com is debuting the Mentrix panel at NAB Show New York (Booth 739) today. Combining physical controls with a touchscreen interface, Mentrix is designed ...
21/10/2026
Amagi, the media industry cloud company, today announced a strategic partnership with Sistemas de Video Comunicaci n S.A. (SVC) to expand access to its cloud-ba...
21/10/2026
Lipsie Launches LipsieSync, a Human-First AI Dubbing Workflow for Multilingual V...
21/10/2026
Mayday Parade Music Video Shot with Blackmagic PYXIS 12K
Brie Clayton October 20, 2026
0 Comments
Multi scale sensor allows DP to capture 12K, 8K and ...
21/10/2026
USS Defiant Pulse Phasers in After Effects - No Plugins!
Graham Quince October 20, 2026
0 Comments
I love the USS Defiant from Star Trek: Deep Space N...
21/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
21/10/2026
Stacey Dooley Sleeps Over returns for a seventh series in 2027, with Stacey Dooley MBE getting exclusive access to the homes and lives of Kerry Katona, Lauryn G...
21/10/2026
Expansion builds on broadcasters successful FAST launch and grows portfolio to 12 channels
New channels dedicated to iconic brands including Top Gear, EastEnde...
21/10/2026
Comscore Launches New Monthly Report Highlighting Ad Exposure Figures Across Tel...
21/10/2026
Since 2012, Saorsat has provided coverage in areas where Saorview reception may be challenged. Services from RT , TG4 and Oireachtas TV are currently available ...
21/10/2026
NVIDIA builds tools to enable safe agents across the stack. The NVIDIA OpenShell...
21/10/2026
NVIDIA cuDSS, launched today in general availability, is an NVIDIA CUDA-X librar...
21/10/2026
To increase productivity, accelerate innovation and create new opportunities for...
21/10/2026
Demand from AI-natives is pulling the European AI cloud ecosystem forward faster...
21/10/2026
General availability of the instances is coming next month, with planned expansi...
21/10/2026
At GTC Berlin, NVIDIA is showcasing its full lineup of local AI hardware. RTX Spark, which launched last week, powers personal agents on Windows PCs; DGX Spark ...
20/10/2026
Sony's Beyond Sports technology will power real-time animation of the game, ...
20/10/2026
The NBA is putting on a full-court press when it comes to digital offerings this year, and that includes some great new features on the NBA App as well as a new...
20/10/2026
Testing what works is an important part of developing successful fan engagement....
20/10/2026
One fan in The Nordecke will wear the device via headset on Wednesday night
Spo...
20/10/2026
Regular-season game coverage will continue to be a mix of REMI and onsite produc...
20/10/2026
Grass Valley has added Bridge Technologies to the company's Media eXchange Layer (MXL) initiative, demonstrating how this has supported the containerization...
20/10/2026
Gravity Media has rapidly deployed complete IP-based broadcast infrastructure fo...
20/10/2026
Ateme has announced a strategic partnership with Viamedia, the ad tech company b...
20/10/2026
As concerts and other live performances reach audiences through global streaming...
20/10/2026
Media Links' Xscend platform and MDP3020 IP media gateways supported live broadcast contribution for the All-Asia Games, that recently took place in Japan.
...
20/10/2026
For Major League Soccer creative teams, 2027 is going to be unlike any year they...
20/10/2026
The National Hockey League (NHL) has given a first look at its planned transform...
20/10/2026
FloSports and the National Lacrosse League (NLL) have entered into a multiyear m...
20/10/2026
The Advanced Media Workflow Association (AMWA) has received a 2026 Technology & ...
20/10/2026
Pearl TV has made significant progress in its industry-wide initiative to make NEXTGEN TV converter boxes more affordable and accessible to consumers, marking a...
20/10/2026
The 37th edition of SPORTEL Awards took place on Monday, Oct. 19 at the Grimaldi Forum Monaco, under the High Patronage of H.S.H. Prince Albert II of Monaco. Ch...
20/10/2026
Amagi has announced a strategic partnership with Sistemas de Video Comunicaci n ...
20/10/2026
The home of cycling coverage is secure as Eurosport and TNT Sports today extend ...
20/10/2026
By Ramona Flume
One of the most exciting things about the Sundance Film Festiva...
20/10/2026
Veteran Entertainment and Brand Executive to Lead Global Communications Strategy...