
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 ...
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...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
10/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/02/2026
A look inside the tech, tools, and team that make the Super Bowl into true eye c...
09/02/2026
Software-defined IP backbone and centralized signal-control hub redefine champio...
09/02/2026
Broadcasters continue to raise the bar when it comes to producing an eye-catchin...
09/02/2026
Game coverage will feature nearly 100 cameras, a deep well of replay channels, a...
09/02/2026
Sony's imaging tech is the literal lens through which the spectacle and exc...
09/02/2026
The technologies, including AI, allow fans at home to see the athletes, feel' the speed, and sense the skill
With four years from one Winter Games to the ...
09/02/2026
Sportradar AG announces a multi-year agreement with NBC Sports Regional Sports N...
09/02/2026
New York Festivals Advertising Awards proudly unveils a dynamic new Sports Category Group, expanding its 2026 competition to recognize the powerful role sports ...
09/02/2026
Devlin Design Group, Filmwerks, LTN pitched in on the four-day effort
The site ...
09/02/2026
Despite the game taking place right in the middle of NBC Sports' busiest month ever, its production and operations teams pulled off a massive Super Bowl LX ...
09/02/2026
SBS Media Sustainability Challenge returns for 2026
9 February, 2026
Media releases
The challenge offers brands and agencies $500,000 in advertising invent...
09/02/2026
The National Film and Video Foundation (NFVF), an agency of the Department of Sport, Arts, and Culture and custodian of the SAFTAs, is calling on all South Afri...
09/02/2026
The National Film and Video Foundation (NFVF), an agency of the Department of Sp...
09/02/2026
The National Film and Video Foundation (NFVF) is pleased to announce that the call for training provider submissions is open. This funding aims to award grants ...
09/02/2026
Two multi-role L3Harris products - the Red Wolf launched effects vehicle and Sk...
09/02/2026
The L3Harris Key Management System is the first solution on the open market - and available to NATO customers today - that allows countries to create their own ...
09/02/2026
Book a meeting or demonstration at ISE 2026! Please enter the following details. (Tick the relevant box for a meeting or demo):
--
Meeting / Demo*
Meeting...
09/02/2026
Harvey Norman tops Australia's biggest ad spenders as finance and travel surge
Sydney February 9, 2026 - Nielsen's Biggest Ad Spenders of 2025 Report...
09/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/02/2026
Berklee Presents Great American Songbook: What About Us-A P!NK Celebration Featuring a global cast of over 100 Berklee students, the two-night production will...
09/02/2026
Back to All News
A Home for World-Class Filipino Entertainment: The Journey and...
09/02/2026
RT Investigates rapid rise in waiting list for the Central Mental Hospital
am...
08/02/2026
A look inside the tech, tools, and the team that make the Super Bowl into true e...
08/02/2026
Studio programming is deploying multiple sets at Levi's Stadium in Santa Cla...
08/02/2026
The annual in-venue show is a partnership between the NFL and the host venue
NF...
08/02/2026
A software-defined IP backbone and centralized signal control hub redefine champ...
08/02/2026
Networks continue to raise the bar when it comes to producing an eye-catching pr...
08/02/2026
NEP's TFC Fabric empowers NBC to treat a 22-unit production as one seamless ...
08/02/2026
Game coverage will feature nearly 100 cameras, a deep well of replay channels, a...
08/02/2026
The Alum Behind the Sound of the Super Bowl Joshua Sutherland BM '19 was recently interviewed by the Boston Globe about his role as music supervisor for t...
08/02/2026
08 Feb 2026
VEON and JazzWorld Launch Invest in Pakistan, NOW! Inviting Inter...
07/02/2026
X Games will host a live event taking place Thursday, March 12 at Cosm Los Angeles, marking the first-ever draft in X Games history and the official launch poin...
07/02/2026
Onsite experts and shop inside the stadium are providing quick solutions
Before any live event production, there is a high probability that unpredictable issue...
07/02/2026
Three Sony HDC-F5500s will capture this look on the broadcaster's concourse ...
07/02/2026
Inclusion in control-room revamp proves pivotal to supporting this tentpole even...
07/02/2026
The digital giant also produced episodes of The Edge With Micah Parsons' be...
07/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/02/2026
Appear, which specializes in live production technology, announces the appointme...