
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
11/12/2025
Dalet, a leading provider of cloud-native, end-to-end media workflow solutions, ...
26/11/2025
Following the Nov. 21 blackout of NBCUniversal channels on Fubo, the two sides have traded barbs about their inability to reach a new carriage deal....
26/11/2025
LONDON As TV sports rights become increasingly important for both broadcasters and streamers, Ampere Analysis predicts global investment in the genre will surpa...
26/11/2025
LOS ANGELES Vubiquity said it has achieved the Amazon Web Services (AWS) Media & Entertainment Competency as part of the AWS Partner Network (APN). This designa...
26/11/2025
WASHINGTON The Federal Communications Commission's Enforcement Bureau said it has entered into a consent decree with Comcast calling for the cable company t...
26/11/2025
Berklee Named to the Hollywood Reporters Top Music Schools List The publication highlights the college's screen scoring program, industry partnerships, and ...
25/11/2025
Tracy Bonareri Onchoke, an investigative journalist from Kenya is the winner of the Thomson Foundation's Young Journalist Award 2025.
The 26-year-old-sele...
25/11/2025
SVG All-Stars: Blayke Scheer, Senior Director, Creative Content, YES NetworkThe Indiana alum has turned storytelling into an artform for more than two decadesBy...
25/11/2025
Op-Ed: With FCC's C-Band Auction on the Horizon, Broadcasters Need Proven, C...
25/11/2025
Analysis: Is Baller League really the future of sport? By Callum McCarthy, Editor-at-Large
Tuesday, November 25, 2025 - 10:10
Print This Story
With KSI on...
25/11/2025
Platinum Whitepaper: The Growth of Broadcast in the World of Major Large Scale E...
25/11/2025
SVG Summit 2025 Preview: SVG Women's Sports WorkshopBy Samantha Gabay
Tuesday, November 25, 2025 - 10:27 am
Print This Story | Subscribe
Story Highlig...
25/11/2025
SVG New Sponsor Spotlight: CacheFly's Matt Levine on the Evolving Role of th...
25/11/2025
Peacock's EA SPORTS Madden NFL Cast Levels Up on Thanksgiving With SkyCam as...
25/11/2025
Mathias Broe attends the 2025 Sundance Film Festival premiere of Sauna at Library Center Theatre. (Photo by Michael Hurcomb/Shutterstock for Sundance Film Fes...
25/11/2025
The best playlists, podcasts, and audiobooks bring a little extra magic to your daily routine. With new features and offerings, Spotify Premium delivers even mo...
25/11/2025
Comprehensive new research confirms what we already knew: Australian music fans love the quality, quantity, and access they have to new and local music on strea...
25/11/2025
Applicable Products
Objectives The purpose of this application note is to give a brief background on 5G (NR) wireless communication an explain the reason a SN...
25/11/2025
Nielsen will now measure both Lionsgate's FAST channel MovieSphere and Movie...
25/11/2025
FREMONT, Calif. Blackmagic Design said the Associated Press has completed the transition of its global video-editing platform to DaVinci Resolve Studio....
25/11/2025
Berklees Inaugural Nat King Cole and Natalie Cole Scholarship Awarded to Paris P...
25/11/2025
NEW YORK NFL and college football coverage, the MLB postseason and the new fall broadcast-TV season contributed to major gains for traditional media companies a...
25/11/2025
SAUGERTIES, N.Y. Tower Products, a manufacturer and distributor of pro video and audio equipment here, said President and CEO Jim Veltrie will retire from the c...
25/11/2025
Following last week's disclosure that it had acquired a 8.2% stake in E.W. Scripps, Sinclair has filed papers with the Securities and Exchange Commission pr...
25/11/2025
25 Nov 2025
VEON's QazCode and MeetKai Sign Agreement to Power National LLM...
25/11/2025
UKTV has acquired a high-profile slate of US dramas from Paramount Global Conten...
25/11/2025
A symphony of genius, rivalry and vengeance, boldly reimagined from Peter Shaffe...
25/11/2025
Article courtesy of Cinematography World
Read the article
FilmLight has finalised the prestigious 2025 FilmLight Colour Awards jury and welcomed award-winning...
25/11/2025
Article courtesy of Prensario
Read the article
La serie fue dirigida por Juli n de Tavira, Rodrigo Santos, y David Leche Ruiz, con direcci n de fotograf a a...
25/11/2025
Article courtesy of The Hollywood Reporter
Read the article
The awards, celebr...
25/11/2025
Article courtesy of Televisual
Read the article
Already live in Los Angeles and rolling out in New York and London, Nara gives producers, colourists, conform ...
25/11/2025
Article courtesy of Digital Media World
Read the article
ARTONE post-house in Tokyo is the first facility in Japan to integrate Baselight M, choosing its prec...
25/11/2025
Article courtesy of The Hollywood Reporter
Read the article
Once hidden in post-production suites, the artists who make movies and TV shows look the way they ...
25/11/2025
Article courtesy of Deadline
Read the article
The Brutalist' & Bad Bunny's Nuevayol' Music Video Among 2025 FilmLight Colour Award Winners - Cam...
25/11/2025
Black Forest Labs - the frontier AI research lab developing visual generative AI models - today released the FLUX.2 family of state-of-the-art image generation ...
24/11/2025
HBO's The Shuffle' Reveals Longtime Connection of Sports and Entertainm...
24/11/2025
2025 Sports Broadcasting Hall of Fame: Hiroshi Kiriyama, Sony Broadcast (and Ind...
24/11/2025
SVG Summit 2025 Preview: FIFA, NBC Olympics, Fox Sports, CBS Sports, Netflix, NF...
24/11/2025
Case Study: YES Network Streamlines Broadcast Operations with Beam DynamicsBy SVG Staff
Monday, November 24, 2025 - 11:18 am
Print This Story | Subscribe
...
24/11/2025
Platinum White Paper: More of Everything: How Broadcasters are Changing Their Ap...
24/11/2025
Versant Media USA Sports President Matt Hong on How Versant Has Best of Both Wor...
24/11/2025
SVG Sit-Down: NABA Director-General Rebecca Hanson on How FCC's C-Band Aucti...
24/11/2025
SVG New Sponsor Spotlight: Bolin Technology's Sapan Doshi on the Proliferati...
24/11/2025
Robyn made her long-awaited return to the stage this week, as Spotify and Acne Studios brought friends and top fans together for an unforgettable evening at the...
24/11/2025
After more than two years of redevelopment, FC Barcelona returned to its spiritual home on November 22, hosting Athletic Club in the first La Liga match at the ...
24/11/2025
The L3Harris next-generation imager for NOAA's GeoXO satellite system will c...
24/11/2025
Mumbai - November 24, 2025 - In a first-of-its-kind initiative, JioStar, in coll...
24/11/2025
Disney Achieves Largest Monthly Share Increase, Followed by FOX and Paramount, w...
24/11/2025
ROCHESTER, N.Y. Sinclair said it has elevated Sean LaRose, director of sales at WUHF and partner station WHAM here, to vice president and general manager, effec...
24/11/2025
Back to All News
Chaos and Connection: Meet the Unfiltered Cast of Reality Dati...