
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 ...
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...
08/06/2026
The two execs discuss the goals and the challenges of building a huge multi-cult...
08/06/2026
This industry legend has been a road warrior since the early '90s and is, today, a lynchpin on College GameDay
The sports-production industry continues to ...
08/06/2026
DAZN has agreed a multi-year rights partnership with Extreme Fighting Championship (EFC), expanding its global combat sports portfolio.
DAZN will broadcast EFC...
08/06/2026
As fans move across broadcast, streaming, social, mobile and creator-led platforms, and they expect every angle, in real time, TVU Networks has released a new e...
08/06/2026
Infront has further strengthened the 2026 Diamond League's international bro...
08/06/2026
Grass Valley has announced the appointment of Sam Craig as Vice President, Global Pre-Sales. Based in the United States, Craig will lead Grass Valley's glob...
08/06/2026
SMPTE has announced its summer 2026 education lineup covering IP networking and SMPTE ST 2110, including two standalone courses, a 13-week boot camp, and a hand...
08/06/2026
Sportradar Group AG has announced a multi-year global agreement with Kalshi, a p...
08/06/2026
FIFA and Gamefam have announced the launch of a FIFA World Cup 2026 event on Roblox, running June 5 through July 31, 2026. The event centers on FIFA Super Socce...
08/06/2026
A collaboration of NHL Productions, Monumental Sports, and Michael Levitt Produc...
08/06/2026
CBS Sports production staffer Bryce Adair has died at the age of 31 after sustaining injuries during a car accident on Wednesday while in Ohio working the the P...
08/06/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, including new deals, departures, and assignments compiled from press releases and repo...
08/06/2026
WMT Digital today announced the launch of WMT Fan Intelligence, designed to unif...
08/06/2026
The Heat are the seventh NBA team to air their games over-the-air next season...
08/06/2026
Paramount and UFC have announced an expansion of their media rights partnership making Paramount the exclusive home of UFC Numbered Event main cards in Canada ...
08/06/2026
The Qatar Football Association (QFA), in cooperation with Sponix and broadcaster...
08/06/2026
Project B has announced the appointment of Host Broadcast Services (HBS) as Offi...
08/06/2026
The Buckeyes now produce and stream upwards of 200 sports events annually with a...
08/06/2026
At Spotify, our commitment to the LGBTQIA community is year-round. Through GLOW, our global music program, we celebrate and amplify the contributions of queer ...
08/06/2026
Get Hands-on With Keyboard & Synth Brands
GearExpo UK wouldn't be complete without some synth action, and we've got some of the industry's most ...
08/06/2026
50 popular in-ear monitoring system profiles added
The latest update for IK Multimedia's headphone-correction system has just arrived, and introduces ca...
08/06/2026
Manny Marroquin signature cans upgraded with SLAM Technology
The flagship model in Audeze's Manny Marroquin Signature Series has just been treated to an...
08/06/2026
Air domain supremacy redefined - New counter UAS, space solutions and directiona...
08/06/2026
he BBC and BritBox have announced that Edward Bluemel (We Might Regret This, My ...
08/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/06/2026
Dante interfaces, intercom and control systems for modern AV environments
Glensound will showcase a focused range of networked audio and intercom solutions fo...
08/06/2026
Bminty is proud to celebrate the first anniversary of T18, the new free national French DTT channel launched on June 6, 2025. This symbolic milestone also marks...
08/06/2026
DaVinci Resolve Used For Global Collaboration on Tony Foster Documentary
Brie Clayton June 8, 2026
0 Comments
DaVinci Resolve Studio and Blackmagic Cl...
08/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/06/2026
Plus, 20% off TVs ahead of kick-offMonday 8 June 2026
Sky introduces Real Time...
08/06/2026
FOX Secures Live NFL Game Package in Mexico Starting in Fall 2026 Agreement Features Thursday Night Football, Sunday Games Package, Thanksgiving Day Games, al...
08/06/2026
FOX One, FOX Sports and Indeed Name Austin Franklin and Kevin Akoto as FOX One C...
08/06/2026
Meet us on the show floor
Stand #286310 Discover Nara, the media management tool used by major facilities including Harbor and Molinare.
Nara v2 introduces re...
08/06/2026
L'art de l'Image dans Reflet dans un diamant mort' Une conversation avec le directeur de la photographie Manuel Dacosse, SBC et l' talonneur Pe...
08/06/2026
Embracing today's modern media workflows: FilmLight presents Nara 2.0, with FilmLight API Designed to support the growing demands of today's production ...
08/06/2026
Moderated by Andy Minuth, FilmLight's Colour Workflow Specialist
Wednesday 18 February
6:00pm / Doors open
7:00pm / Presentation in German
8:00pm / Drin...
08/06/2026
Join us on April 14 at 10:00am for a technical roundtable with the Filmlight dev...
08/06/2026
You're invited to FLAPI Classroom The fundamentals of coding and machine-assisted development
These sessions will help you build the skills needed to cre...
08/06/2026
With Sylvain Canaux (St Louis, Paris) and J r me Cloutier (MELS, Montreal)
Wednesday 6 May
Pick your time: 1:00PM / 5:00PM
Note: The presentation will be hel...
08/06/2026
FilmLight, 1107 N El Centro Ave, Los Angeles
Doors open at 3:30pm
Join the FilmLight team on June 9th at 4pm to learn how FilmLight products and APIs can stre...
08/06/2026
The Creators List launched to Help Brands Connect With Top Creators In CannesThe curated directory launched by Tubefilter, Comscore, Whalar Group and Gospel Sta...
08/06/2026
Irish YouTube star DavidMC joins Aisling O'Reilly to tackle all things socce...
07/06/2026
Company introduce 21 new protective covers
Decksaver have just announced their Sping 2026 Drop, which sees a total of 21 new models added to their ever-grow...
07/06/2026
How to Recreate the Star Trek TNG jump to warp in After Effects
Graham Quince June 7, 2026
0 Comments
In 1987, John Knoll at ILM had to use labor-inte...
07/06/2026
Filming Coffee Communities with Blackmagic PYXIS
Brie Clayton June 7, 2026
0 Comments
Remote travel, fast setups and hard sun shaped this documentary ...
07/06/2026
NVIDIA and Doosan Group are expanding their collaboration to advance new opportu...