
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...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
03/08/2026
SVG's annual TranSPORT conference returns to New York City for a full day of sessions focused on the current state of live-sports-transmission technology. S...
03/08/2026
A five-time Emmy winner, this esports vet has built a production career on live storytelling, audience connection, and meeting viewers wherever they are
The sp...
03/08/2026
Live production in the cloud is a growing trend across the industry and Major Le...
03/08/2026
(L-R) Nyah B., Nala B., Shannon Elizabeth S., Celia K., Olive G., and Nikki B. attend the Q&A for Cookie Queens by Alysa Nahmias, an official selection of the...
03/08/2026
Recreates a 1977 Hohner Clavinet D6
After launching a software recreation of their own electric piano, Rhodes set about capturing another classic instrument...
03/08/2026
A modern solution for an old technique
Peak Tamer is a new standalone application that automatically applies gain automation to keep rogue peaks under cont...
03/08/2026
Plug-in gains object metadata automation export
Sound Particles have just released an update that adds a new Metadata Automation function to their their rec...
03/08/2026
SGL Carbon and X-energy today announced a binding agreement to double SGL's production capacity for medium-grain isotropic graphite ( NBG-18 ), a specialize...
03/08/2026
Glensound will launch the Greater Divine Supernal at PLASA Show 2026, extending its intelligent loudspeaker range for professional studio monitoring and live au...
03/08/2026
How Agua Tinta's Class Project Launched Her Songwriting Career Two years after graduating from Berklee, the songwriter has a Latin Grammy nomination, a So...
03/08/2026
Leiden University's new Campus Spui, located in the heart of The Hague, the diplomatic and administrative centre of the Netherlands, opened in February 2026...
03/08/2026
Bitfocus, the specialist in media control and monitoring, has received a further boost to its plans for continuing growth, particularly in Europe and North Amer...
03/08/2026
Building on the momentum of a landmark year for soccer in North America, Leagues...
02/08/2026
Classic EQ design goes virtual
Following on from the launch of the 500-series version of their BAX EQ unit, Dangerous Music have now teamed up with modellin...
02/08/2026
The Government's Missing Dimension
This article was originally published on the National Preparedness Commission website on 25 June 2026.
----------------...
01/08/2026
Latest free Vaults instrument released
The Crow Hill Company's Vaults collection offers a continually rotating selection of virtual instruments and samp...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
COW Jobs: Lead Generation Representative - Animation Services
Brie Clayton July 31, 2026
0 Comments
Lead Generation Representative - Animation Service...
01/08/2026
Emilie Lowe Shoots Award Winning Short Film Where Dead Things Grow with Blackmag...
01/08/2026
Early Registration Opens for the 2026 SMPTE Media Technology Summit
Brie Clayton July 31, 2026
0 Comments
Initial Program Announced Alongside New Medi...
31/07/2026
With an emphasis on local, the league is looking beyond the initial four teams t...
31/07/2026
The 2026 Sundance Institute Directors Lab fellows in Estes Park, Colorado (Photo by Gabe Rovick)
Dear Friends,
This has been an extraordinary year for our ar...
31/07/2026
Offers 360-degree sound placement in any DAW
Audiocube have just announced the launch of a new plug-in that embeds a complete 3D acoustic environment inside...
31/07/2026
10 new Chinese C-Pop voices introduced
While Sonarworks are best known to many for their room-correction software, their product range also includes an inno...
31/07/2026
Reimagines the vintage BBD sound character
PSPaudioware have now officially launched the new delay plug-in that they were previewing at GearExpo UK. Said to...
31/07/2026
The Savannah Bananas has built its reputation on refusing to play baseball by traditional rules, and the team's production arm Banana Ball TV (BTV) has draf...
31/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
31/07/2026
SMPTE, the home for media professionals, technologists and engineers, today opened early registration for the 2026 Media Technology Summit (MTS) and announced i...
31/07/2026
Clear-Com announced that Central Christian Church has transformed communication across its live production operations by implementing Clear-Com's LQ Seri...
31/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
31/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
31/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
31/07/2026
IBC has unveiled the finalists for the IBC2026 Innovation Awards, recognising collaborative projects from around the world that solve real-world challenges and ...
31/07/2026
From focus puller to colourist
Caroline Shawley July 30, 2026
0 Comments
Ana Mar a Ormaza shares her story of instinct, storytelling and finding a cre...
31/07/2026
Amazon Prime Documentary Andata e Ritorno Relies on Blackmagic Design
Brie Clayton July 30, 2026
0 Comments
DaVinci Resolve Studio and Blackmagic Clou...
31/07/2026
Krotos Launches Video to Sound Plugin for DaVinci Resolve
Brie Clayton July 30, 2026
0 Comments
AI-assisted workflow helps editors add synchronized, p...
31/07/2026
Athletics, Camogie, the Dublin Horse Show, the FAI Cup, Golf, Hockey, the UEFA C...
31/07/2026
Luxembourg, July 31, 2026 - Pursuant to the liquidity contract entered into by SES with BNP Paribas as of 7 April 2026, please see the below update on the progr...
31/07/2026
Luxembourg, July 31, 2026 - SES today published a restatement of its FY2025 EU Taxonomy (Article 8) disclosure. The restatement updates the FY2025 EU Taxonomy d...
31/07/2026
RT Commercial has today announced Mercedes-Benz Ireland will return as the offi...
31/07/2026
RT Supporting the Arts is delighted to spotlight a diverse range of arts, culture and heritage events taking place across Ireland this August. From major festi...
30/07/2026
CP Communications provided RF audio, RF video, communications, RF coordination, ...