
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 ...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
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...
23/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
23/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
23/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
23/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
23/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
23/06/2026
Multifaceted Growth Executive Brings 20+ Years of Experience Leading Organizations Across Tech and M&E
Imagine Communications today announced the appointment ...
23/06/2026
Australians in Film and Screen Australia's talent development initiative UNT...
23/06/2026
Visual Productions Unveils RdmRelay2 Four-channel Relay Control at InfoComm 2026
Brie Clayton June 22, 2026
0 Comments
New Relay Solution Combines DMX, ...
23/06/2026
SMPTE Makes Its Standards Freely Accessible, Opening Standards Library to the Gl...
23/06/2026
Newly identified molecule strengthens the eye's response to damage in retinal disease Scripps Research discovery finds that restoring the naturally occurrin...
22/06/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
22/06/2026
Cosm has announced the appointment of David Ho as Chief Legal Officer, a newly created executive role reporting to President and CEO Jeb Terry. Ho will oversee ...
22/06/2026
Warner Bros. Discovery and Amazon Web Services (AWS) have announced the developm...
22/06/2026
Daktronics has completed an audio control system upgrade at Petco Park in San Di...
22/06/2026
Accelerate Media has named John Willi as President and announced the launch of the Accelerate Sports Network (ASN), a prep sports media and streaming platform c...
22/06/2026
All Women's Sports Network (AWSN) and 3XBA (3 3 Basketball Association) have announced live television coverage of the annual 3XBA tournament on Friday, Jun...
22/06/2026
OWL AI has announced the appointment of Jay Prasad as Chief Executive Officer and member of the Board of Directors. Prasad succeeds Josh Gwyther, who has served...
22/06/2026
CP Communications delivered RF video and audio support for TNT's Inside the NBA at the 2026 NBA Finals, providing main show coverage in San Antonio and ea...
22/06/2026
Polymarket has announced a partnership with GRID, an official esports data platf...
22/06/2026
As sports venues continue to evolve into more video-centric, fan-engagement-driv...
22/06/2026
As the regional sports production scene shifts toward streaming, this Texan helps lead the engineering behind Victory+'s growing live platform...
22/06/2026
By Kristin Feeley, Director, Documentary Film & Artist Programs
the memories of your elders [are] a scaffolding for you to build your identity on - and t...
22/06/2026
New hyper-resolution analyser EQ revealed
CEDAR Audio's all-new Icons plug-in series has just gained its newest member, Blade. Described by the compan...
22/06/2026
Turn any live input into a cinematic soundscape
Designed for use in the studio and on stage, Sampleson's latest creation is capable of taking any audio ...
22/06/2026
Adds guitar strings to Eurorack rigs
ADDAC System are renowned for their weird and wonderful synth designs, and their line-up includes plenty of gear that...
22/06/2026
FIFA World Cup 2026 fever grows, as more than one third of Australians tune in ...
22/06/2026
In our latest blog, Tim Pearson explores NAGRA Venturi, the new streaming security solution for the AI era from NAGRAVISION. Designed to aggregate and analyze ...
22/06/2026
Expanded integrations give advertisers access to distinct contextual signals acr...
22/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/06/2026
Xilica today announced the release of Dynamic Voice Lift, a new feature in Xilica Designer v4.12 that brings adaptive speech reinforcement to large meeting spac...
22/06/2026
Telecom operators have seen remarkable returns from using generative AI to automate network management, customer care and back-office operations. Most of that i...
22/06/2026
Monday 22 June 2026
Official trailer released for Katie Price: Nothing to Hide,...
22/06/2026
The next era of AI will not be defined by compute alone. Its growth will be dete...
22/06/2026
Mission, Vision and Veritas - new Los Alamos National Laboratory (LANL) supercom...
22/06/2026
At the ISC conference running in Hamburg this week, NVIDIA is introducing new so...
22/06/2026
For the past two years, the U.S. National Science Foundation's National Arti...
22/06/2026
JUPITER, Europe's first exascale supercomputer at Germany's Forschungszentrum J lich, runs on NVIDIA Grace Hopper Superchips and NVIDIA Quantum-X800 Inf...
21/06/2026
To call the 2026 FIFA World Cup a big undertaking would be a big understatement....
21/06/2026
New series now live on Udemy
Regular SOS contributor and Cubase workshop columnist John Walden has just released a new Cubase video course that is now avail...
21/06/2026
Hot tubs sit at about 38 to 40 degrees Celsius, warm enough that most people can only soak for about 15 minutes. NVIDIA's newest AI servers can run their co...
21/06/2026
Sunday 21 June 2026
Sky announces immersive documentary series The Wargame
The Wargame first looks
ZIP (2MB)
Sky today confirms the commission of The Wargam...
20/06/2026
New add-on creates doubles & vocal stacks
IK Multimedia's latest ReSing add-on kits the innovative software out with the ability to automatically genera...
20/06/2026
What exactly is Apogee Control V3?
Control V3 is a new mixer application that controls Apogee interfaces. The new hit feature is that V3 finally allows for...
19/06/2026
Split compound eases operational challenges at Shinnecock Hills Golf Club...
19/06/2026
North Carolina, Oklahoma meet in the best-of-three Finals as ESPN leans into spe...