
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 ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
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...
22/05/2026
Germany's Magenta TV, which will have 44 exclusive FIFA World Cup match broa...
22/05/2026
DAZN, the world's leading sports entertainment platform, has acquired global broadcast rights to the International Federation of American Football's ( I...
22/05/2026
ATHLOS, the all-women's professional track and field league, has announced i...
22/05/2026
The National Academy of Television Arts & Sciences (NATAS) today announced that the 47th Annual Sports Emmy Awards and the 47th Annual News & Documentary Emmy A...
22/05/2026
Wooden Camera today announced the release of new accessories for the Blackmagic URSA Cine Immersive. The new lineup includes a redesigned Top Plate and Side Rai...
22/05/2026
YES Network and OTT Advisors have announced a sixth consecutive season of their streaming partnership, continuing their collaboration on the Gotham app. OTT Adv...
22/05/2026
NESN, New England's premier sports network, will again turn its camera to Fe...
22/05/2026
Dale Pro Audio is hosting an RF over Fiber Livestream Webinar on May 28 from 1-2:30 pm EST. With major sporting events and large-scale productions putting incre...
22/05/2026
Audio-Technica has announced key leadership appointments designed to further strengthen its sales organization and drive continued growth across the Americas. M...
22/05/2026
After nearly four decades shaping the global combat sports landscape, Scott Coker has announced a powerful return as he looks to build a new international mixed...
22/05/2026
Skyline Communications, the company behind the globally deployed DataMiner xOps platform, today announced the launch of xOps Vanguard Runway, a strategic accele...
22/05/2026
For the fully onsite production, 30 cameras - including a SkyCam and Megalodon - will capture the action in Texas
One of the world's biggest rodeo producti...
22/05/2026
Leading Argentina-based sports media company Torneos y Competencias S.A. has modernized its playout operations, implementing a fully redundant, multichannel env...
22/05/2026
As the 2026 Major League Pickleball season kicks off this weekend in Dallas, it ...
22/05/2026
Shure has become a minority investor in Edge Sound Research, a start-up company that is developing new experiential audio technologies that redefine how many au...
22/05/2026
In advance of this year's Sports Emmy Awards, SVG is taking a deep dive into...
22/05/2026
The National Hockey League (NHL) and Amazon Music announced that GRAMMY Award-winning superstar Jelly Roll will provide the official theme song of the 2026 Stan...
22/05/2026
David Pogue will keynote SVV Summer Camp and discuss Apple at 50: How the World...
22/05/2026
In its second year as rightsholder, FOX Sports goes bigger across the board for ...
22/05/2026
Heading into FOX Sports' second Indianapolis 500, Lead Director Mitch Riggin...
22/05/2026
At our 2026 Investor Day, we shared an inside look at the rebuild of our advertising business. This pivot to our own purpose-built platform is already driving s...
22/05/2026
Podcasting on Spotify continues to grow, and so do the ways listeners engage with it. At Investor Day 2026, we shared how we're building the next chapter of...
22/05/2026
Limited-time collections now available
Restoration experts CEDAR Audio have recently launched a new line of Icons plug-ins that make their powerful processo...
22/05/2026
Three new classics join Model Pass line-up
Boss' PX-1 Plugout Pedal offers an innovative approach to guitar pedals, providing users with a hardware stom...
22/05/2026
At its Meitingen site, SGL Carbon has implemented two key projects to further de...
22/05/2026
Statement regarding 2026 National NAIDOC Lifetime Achievement Award for the late...
22/05/2026
Latest data reveals steady distributor rankings, a seasonal shift toward digital...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Amagi Media Labs Limited (NSE: AMAGI, BSE: 544679), a cloud-native SaaS platform providing AI-enabled solutions to global media and entertainment companies, tod...
22/05/2026
An nima Post Relies on Cintel to Revive Classic Mexican Films
Brie Clayton May 22, 2026
0 Comments
Film scanner and DaVinci Resolve Studio help manage...
22/05/2026
Boris FX Sapphire Adds Optical Beauty and Hypnotic Textures
Jessie Electa Petrov May 22, 2026
0 Comments
The 2026.5 release introduces advanced defocu...
22/05/2026
Deployment Preserves Trusted Workflows While Enabling a Path to UHD and SMPTE ST 2110
Leading Argentina-based sports media company Torneos y Competencias S.A....
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Back to All News
Ex-Husband, Current Husband, One Wild Rescue: Korean Action Co...
22/05/2026
Catch the latest in Irish music live from venues such as Whelan's, R is n Du...
21/05/2026
Game Creek Video Columbia and Celtic, NEP Supershooter 8 will house onsite produ...
21/05/2026
Freshly graduated, this upstart producer, director, and camera operator is already working as an AP on videoboard shows for the Philadelphia Phillies
In the li...
21/05/2026
Media Links has announced a channel partnership with Clearcast Asia, a broadcast...
21/05/2026
SiriusXM and NASCAR have announced a multi-year renewal of their broadcasting agreement. SiriusXM will continue to carry live broadcasts of every NASCAR Cup Ser...
21/05/2026
Audio-Technica held a demonstration event at its Technica House location in New ...
21/05/2026
Ateme has announced that RTL Deutschland has selected Ateme's software-based...
21/05/2026
LiveU has announced that BCC Live deployed the LU900Q intelligent production unit for the first time during the 2026 Memorial Hermann IRONMAN Texas North Americ...
21/05/2026
ATSC has announced that Mark Aitken, President of ONE Media and Senior VP of Advanced Technology at Sinclair Broadcast Group, will receive the 2026 Mark Richer ...
21/05/2026
BBright has published a technical analysis of the Media eXchange Layer (MXL), de...