
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...
16/03/2026
DAZN will allow fans in select international territories to watch the NCAA men...
16/03/2026
IDM and The Skate Board Association (SBA) have announced a partnership with Coop...
16/03/2026
Solid State Logic (SSL) will debut the Net I/O ST 2110 Bridge at NAB 2026 (booth C6907), a standalone unit that converts between ST 2110 and Dante audio formats...
16/03/2026
Marshall Electronics (Booth C8339) is introducing its first all-IP 4K POV camera, the CV574-WP, at NAB 2026. The camera carries an IP67 weatherproof rating for ...
16/03/2026
Sony Electronics' Camera Verify (beta), a feature of its Camera Authenticity Solution which enables news organizations to share content authenticity informa...
16/03/2026
FloSports has announced a partnership with Storied Sports, a content and IP studio founded by former espnW and The Players' Tribune executives, to develop s...
16/03/2026
Montreux Jazz Festival has announced a multi-year collaboration with Gravity Media, who will become the Festival's Audio Visual Production Provider followin...
16/03/2026
USSI Global, a provider of customized network, broadcast and digital signage systems and services, has announced Ralph Annunziata joined the company on Jan. 5 a...
16/03/2026
Boland Communications (booth C3519) will exhibit at NAB Show 2026 in Las Vegas, ...
16/03/2026
Built in partnership with Diversified, the system
As the sports broadcast indus...
16/03/2026
Global FAST (Free Ad-supported Streaming TV) viewership grew 21% year-over-year ...
16/03/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
16/03/2026
A still from Mr. Nobody Against Putin by David Borestein and Pavel Talankin, a...
16/03/2026
Promises studio-grade fidelity for the stage
Cloudvocal have announced the launch of a new instrument mic designed for professional live performers and engi...
16/03/2026
Popular MIDI/CV converter & interface overhauled
Kenton have announced the launch of the USB Solo Mk2, a new and improved version of their compact MIDI to C...
16/03/2026
Running from 16-29 March 2026
Starting from today (16 March) and running until 29 March 2026, Sonarworks are offering discounts of up to 40% across their ra...
16/03/2026
Dr. Robert H. Goddard and a liquid oxygen-gasoline rocket in the frame from which it was fired on March 16, 1926, at Auburn, Massachusetts. Credit: NASA....
16/03/2026
Precision-guided munitions shown in production illustrate one of many operational systems benefiting from modernized M-Code GPS, supporting assured positioning,...
16/03/2026
NEW YORK - March 16, 2026 - A E Global Media and Nielsen today announced a new,...
16/03/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, is delivering the first commercial 100-Gigabit systems following successful validation and certification for customer n...
16/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/03/2026
Shotoku USA, Shotoku Broadcast Systems' North American operation, will unveil significant additions to its platform at NAB 2026. Topping the list is the wor...
16/03/2026
Ikegami USA will demonstrate the latest additions to its wide range of broadcast-quality cameras, controllers and monitors on Central Hall booth C3819 during th...
16/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/03/2026
ELEMENTS launches GRID at NAB Show 2026
Brie Clayton March 15, 2026
0 Comments
North Hall, Booth N1717
ELEMENTS returns to NAB Show 2026, with an exp...
16/03/2026
Blackmagic Design Cameras Capture Artist Salavat Fidai's Micro Sculptures
Brie Clayton March 15, 2026
0 Comments
6K sensor and open gate capabilit...
16/03/2026
DHD to Introduce Latest Generation Broadcast Audio Mixers at NAB 2026, Las Vegas
Brie Clayton March 15, 2026
0 Comments
Hero image: Front of DHD RM1 P...
16/03/2026
16 Mar 2026
VEON Files its 2025 Annual Report on Form 20-F Dubai and New York, March 16, 2026 - VEON Ltd. (Nasdaq: VEON), a global digital operator ( VEON'...
16/03/2026
Six Couples. 100 Days Apart. One Question: Does Absence Make the Heart Grow Fond...
16/03/2026
Monday 16 March 2026
Tina Fey, Jamie Dornan and Riz Ahmed announced as first th...
16/03/2026
Back to All News
Netflix Has Released the Trailer for Love at Last, Starring Ed...
16/03/2026
The reporting option was introduced following extensive consultation with publis...
16/03/2026
After a nail-biting Grand Finale, Rose of Tralee Katelyn Cummins has been announced as the winner of Dancing with the Stars 2026.
The four finalists each dance...
16/03/2026
Welcome to Moore Street will begin on RT One and RT Player on Thursday 19 Marc...
15/03/2026
Visit ToolsOnAir at NAB Las Vegas 2026
More Details:From April 19-22, join us at NAB Show Las Vegas in the North Hall, Booth N1258, for an exclusive preview of...
15/03/2026
Latest dark drama, thrillers & tension library announced
The Very Loud Indeed Co.'s latest Kontakt library has just arrived, delivering a third instalme...
15/03/2026
Johannesburg, 14 March 2026 - On 13 and 14 March 2026, the 19th Annual South Afr...
15/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
14/03/2026
Combines mic, USB interface & wireless IEMs
Following a successful Kickstarter campaign, HISONG have announced that their innovative AirStudio S1 device is ...
14/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
14/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
14/03/2026
Yospace, the trusted leader in Dynamic Ad Insertion (DAI), stitched 5.4 billion one-to-one addressable OTT advertisements across the 17 days of Milano Cortina 2...
14/03/2026
Telestream Advances Production-Ready AI Across Its Product Portfolio
Brie Clayton March 13, 2026
0 Comments
New AI capabilities drive smarter automati...