
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...
10/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/03/2026
Foos Gone Wild and Combate Global have teamed up to create a twist on combat sports competition, announcing the launch of a special amateur Mixed Martial Arts (...
09/03/2026
At the 2026 NAB Show, Harmonic will introduce significant enhancements to its video appliances and SaaS solutions, highlighted by a next-generation media server...
09/03/2026
ESPN's March 3 spring training matchup between Team USA and the San Francisc...
09/03/2026
Most Valuable Promotions (MVP) announces the launch of MVPW, a new global platfo...
09/03/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
09/03/2026
From Super Bowl compounds to Final Four setups, the Hofstra graduate helps coord...
09/03/2026
Stamford plays a key role, but a small team in Cortina and Milan powers local presence and mixed-zone coverage...
09/03/2026
The event brings together SVG's previous Cloud Production and Content Management Forums into a single, comprehensive day of programming...
09/03/2026
Updated Mar 9, 2026
Live surround sound has been a part of the plan for Roman a...
09/03/2026
Contains all six dual-ensemble libraries
VSL's Duality Strings series offers an intriguing alternative to your average string library, capturing two str...
09/03/2026
Outstanding Contribution To UK Music
Photo: Samuel Bradley
Ahead of their upcoming MPG Awards, the Music Producers Guild (MPG) have revealed the latest win...
09/03/2026
Two new high-quality DI boxes announced
Boasting some impressive technical specifications and versatile routing options, Strymon's latest active DI boxe...
09/03/2026
Latest MPE-capable Soundbox library released
The follow-up release for Sonora Cinematic's Pure Nylon has arrived, and becomes the latest addition to the...
09/03/2026
Popular wireless mic head design revived
Sennheiser have revealed that the MD 9235, a cardioid mic head designed to pair up with their handheld wireless sys...
09/03/2026
Captures two sought-after Dumble combo amps
The latest TONEX release captures a pair of sought-after Dumble amplifiers from IK Multimedia's private amp ...
09/03/2026
Flexible all-analogue insert matrix joins line-up
HUM Audio Devices don't tend to do things by halves - even the quickest of glances at the likes of the...
09/03/2026
Captures three sought-after pianos
Rhodes latest software release brings together a collection of three virtual pianos: a concert grand, an acoustic upright...
09/03/2026
Flagship compressor gets an upgrade
Techivation's flagship compressor plug-in has just been treated to a ground-up rebuild that kits it out with some po...
09/03/2026
Profiler OS 14.0 enters open beta
Kemper's amp-modelling systems already have a great reputation, but the latest update to their systems' underlying...
09/03/2026
Procedural stems smasher & recomposition engine
Blinksonic have recently launched a new Reaktor-based tool which they say takes a radical departure from yo...
09/03/2026
13 - 15 March 2026 at University of Warwick Conference Centre
The Institute of Professional Sound (IPS) have announced that The IPS Training Weekend 2026 wi...
09/03/2026
Rohde & Schwarz and NETGEAR collaborate for next generation Wi-Fi 8 access point...
09/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/03/2026
Broadpeak, a leader in streaming and monetization at scale, will showcase its latest innovations for broadcasters and streaming platforms at NAB Show 2026 (boot...
09/03/2026
UKTV has agreed a new partnership deal with Samsung that makes UKTV's free linear channels available to internet-only Samsung TV viewers in the UK for the f...
09/03/2026
Monday 9 March 2026
Sky reveals first look trailer and sets premiere date for S...
09/03/2026
Monday 9 March 2026
Sky Appoints Damian Saunders as Managing Director of Sky Business
Sky has today announced the appointment of Damian Saunders as Managing D...
09/03/2026
Back to All News
The Predator of Seville premieres on Netflix on 27 March
Entertainment
09 March 2026
GlobalSpain
Link copied to clipboard
Download the im...
09/03/2026
Back to All News
Netflix Debuts the Trailer for Love is Blind: Sweden Season 3
Entertainment
09 March 2026
GlobalSweden
Link copied to clipboard
That wait...
09/03/2026
Bill O'Reilly Announces New Weekly Podcast We'll Do It LIVE! We'll Do It LIVE!' A Bold, Fresh Presentation from Bill O'Reilly
New York...
09/03/2026
MOSOLF SE & Co. KG Relies on green.screen from Arvato Systems for Strategic Ener...
09/03/2026
A powerful new national initiative supporting people living with dementia launch...
09/03/2026
AI is everywhere and accelerating everything - becoming essential infrastructure...
09/03/2026
ABB Robotics and NVIDIA today announced a breakthrough partnership that brings i...
07/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/03/2026
TNT Sports and the International Basketball Federation (FIBA) have reached a mul...
06/03/2026
OffBall and TOGETHXR, two influential young media companies in sports, announce a strategic and operational partnership in a shared push to scale and create inn...
06/03/2026
InfoComm 2026, a destination for AV, IT, broadcast, and AI-driven systems, annou...
06/03/2026
LTN and MediaKind announce a strategic partnership to integrate MediaKind's ...