
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 ...
15/10/2026
E! and USA Sports will air Live from the Orange Carpet: WNBA Finals, a one-hour live special hosted by Lilly Singh, on Monday, October 19 at 6 p.m. ET / 3 p.m. ...
15/10/2026
Eutelsat has renewed its partnership with Antik Sat, the direct-to-home (DTH) television platform operated by Antik Telecom, and A1, a communications provider i...
15/10/2026
FOR-A America continues to expand its product portfolio in new directions, moves which are also giving the company more stickiness when it comes to a North Amer...
15/10/2026
Cerberus Tech has introduced Livelink Studio, an integrated cloud production and master control environment that provides redundant live production engines on d...
15/10/2026
USSI Global has promoted Amanda Flynn to Chief Operating Officer (COO). Flynn, who has served as Chief Revenue Officer (CRO) since March 2024, will focus on exp...
15/10/2026
DAZN and Titan World Series have extended their partnership for the coming seasons, with the aim of bringing Titan events free-to-view to audiences worldwide. T...
15/10/2026
Sony Electronics has introduced the ECM-W5 wireless microphone system for video creators, which pairs two transmitters with one receiver. It transmits over a li...
15/10/2026
Perfect Game has extended its partnership with Turtlebox as the Official Bluetoo...
15/10/2026
Eden Project, the UK-based visitor attraction, social enterprise, and educational charity, is using the LiveU EcoSystem to produce and deliver its new Eden Proj...
15/10/2026
HuskerVision, the video production and multimedia operation for University of Nebraska Athletics, has deployed Grass Valley K-Frame production switchers and LDX...
15/10/2026
ESPN has launched ESPN JV (Junior Varsity), a YouTube channel aimed at introducing young audiences to sports through family-friendly content. The channel featur...
15/10/2026
SMAC Entertainment, Creative Artists Agency (CAA), and EverWonder Studio have la...
15/10/2026
The Farmers Insurance Skins Game will return to Prime Video globally on Black Fr...
15/10/2026
Netflix will exclusively broadcast every match of the FIFA World Cup 2030 in Spain and Andorra. The tournament marks the 100th anniversary of the World Cup and ...
15/10/2026
Production elements for the ALCS include Nucleus cameras, Proton cameras, UmpCam...
15/10/2026
MultiDyne Video & Fiber Optic Systems has introduced complete fiber camera kits built around its SilverBack Series for integrating digital cinema cameras into l...
15/10/2026
DIRECTV has launched Build Your Own Multiview, a feature that lets fans select up to four eligible channels to watch together on one screen. Beginning Oct. 13, ...
15/10/2026
ICAT Logistics has named Jonathan Stein Global Vice President of Sports and Live...
15/10/2026
The LA Clippers have announced their local television plan for the 2026-27 season. ClipperVision, which takes over from FanDuel Sports Network SoCal, will broad...
15/10/2026
Latest AUv3 plug-in announced
Fred Anton Corvest's latest AUv3 plug-in has arrived, kitting iPad, iPhone, macOS and Apple Vision Pro users out with a po...
15/10/2026
A new take on tape-stop effects
The latest plug-in from Cableguys offers an interesting new take on the classic tape-stop effect, and also promises to make ...
15/10/2026
Combines four independent processing blocks
RYK Modular have just introduced a new Eurorack module which houses a set of four effects blocks that can be com...
15/10/2026
2.6 Seconds: Death in the Outback
15 October, 2026
Media releases
You remember the headlines. Now see the story behind them.
The must-watch four-part do...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Macroblocking, frozen frames, a missing ad marker that costs a sponsor its spot. A caption that lands two seconds after the line is spoken. These are the moment...
15/10/2026
Riedel Communications today announced that DATALAND, the world's first Museum of AI Arts, has deployed a Riedel Bolero Standalone wireless intercom system t...
15/10/2026
Mediagenix, a global leader in smart content solutions to profitably connect the right content to the right audience, unveiled its vision for AI Context-Aware S...
15/10/2026
Desktop and Rackmount Thunderbolt 5 Expansion Systems Support are All Avid Qualified and Support Three Full-Size PCIe
What's New:
Sonnet Technologies tod...
15/10/2026
Sony Electronics Introduces the ECM-W5 Wireless Microphone with High-Resolution ...
15/10/2026
Maxon, maker of powerful, approachable software solutions for creators working in 2D and 3D design, motion graphics, visual effects and visualization, today ann...
15/10/2026
Evergent, a leader in monetization and subscriber lifecycle management for communication service providers, today announced it has achieved Gold status in TM Fo...
15/10/2026
Berklee Asia Rising Brings Asian and Asian American Music to Signature Series The November 3 concert spotlights student creators and a growing program connect...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/10/2026
Pliant Technologies is highlighting its new CrewCom Flex at NAB New York 2026 (Booth 645). CrewCom Flex is the world's first frameless matrix intercom syste...
15/10/2026
Applications open for Screen Australia and ACTF's Kids IP Incubator 15 October 2026
Screen Australia and the Australian Children's Television Foundatio...
15/10/2026
My trip to IBC2026 came together at the last minute. After joining virtually last year, it was great to be back in Amsterdam to meet with customers and colleagu...
15/10/2026
FOX AdStudio Advances to Next Phase as Leading Agency Partners Put Agentic Adver...
15/10/2026
Arqiva accelerates Middle East growth with landmark Gulfsat Satellite Services a...
15/10/2026
Beginning Friday, October 16, at 1 p.m. BST, customers can pre-order iPhone Duo ...
15/10/2026
NVIDIA today released Nemotron 3.5 Super VL, an open 120-billion-parameter model...
15/10/2026
The Galway Bay Murders starring Kate Mulgrew, Colm Meaney, John Connors, India Mullen, Jack Rowan and Clinton Liberty will air on Sunday 8 November 2026 on RT...
15/10/2026
Much of today's scientific progress begins with computation.
But turning a...