
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 ...
09/10/2026
September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026
New Sports Intelligence helps providers better unders...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
25/09/2026
In-venue and creative video staffers at the professional and collegiate level ha...
25/09/2026
Infront has named Ronald den Hollander as CEO of its Host Broadcast Services (HBS) subsidiary, effective 1 October 2026. The appointment follows the previously ...
25/09/2026
The North American Broadcasters Association (NABA) will hold Cyber University 2.0, a full-day cybersecurity summit for the broadcast and media industries, on Tu...
25/09/2026
Alpha Networks and Ateme have delivered a joint video platform for the digital d...
25/09/2026
Encompass Digital Media has announced the migration of multiple Viaplay free-to-air channels - TV3, TV6, TV8, and TV10 - to its Altitude Scheduling platform. Al...
25/09/2026
NAB Show New York 2026 will take place October 21-22 at the Jacob K. Javits Convention Center in New York City. Registration is open at nabshow.com/newyork.
Th...
25/09/2026
NHL Network has announced its studio programming lineup for the 2026-27 regular ...
25/09/2026
Clear-Com has announced that First Baptist Nashville has upgraded its production communications with a Clear-Com intercom system as part of a sanctuary technolo...
25/09/2026
Broadcast Management Group (BMG) has deployed EVS XT-VIA live video production s...
25/09/2026
BBright, a Hexaglobe Group company, has announced that dotCentral has joined as a sales and support partner in the United States.
BBright's portfolio cover...
25/09/2026
MeyerPro delivered audio, video, broadcast, and LED production for the Acumatica Summit 2026 at the Seattle Convention Center's Summit Building, January 25-...
25/09/2026
The Professional Women's Hockey League has announced its inaugural All-Star Weekend, to be held Saturday, March 7, 2026, at Scotiabank Arena in Toronto. The...
25/09/2026
The 2026 Presidents Cup is underway at Medinah Country Club outside of Chicago with Team USA and an International Team of men's golfers facing off for four ...
25/09/2026
Warner Bros. Discovery's Atlanta hub hosted a day of discussion on REMI prod...
25/09/2026
Algorithm update & new DVA vibrato-detection engine
A new flagship version of Antares' iconic pitch-correction software has arrived, and along with a co...
25/09/2026
New flagship unit to arrive in early 2027
Two notes Audio Engineering have revealed that a new and improved version of their hugely popular reactive load bo...
25/09/2026
AI-free mixing tool gets an upgrade
Launched in October 2025, Tim Exiles Finalist is an algorithmic mixing tool that's been designed for those who don...
25/09/2026
Rohde & Schwarz Mobile Test Summit 2026 puts the spotlight on 6G - registrations...
25/09/2026
In our latest blog, Tim Pearson reflects on IBC 2026 and considers the main learnings against an industry that saw AI finally coming out of the labs and into pr...
25/09/2026
Digital Anarchy Releases Newest Version of its Real-Time Skin Retouching Tool fo...
25/09/2026
Blackmagic Design Used on More Than 50 Summer Films in 2026
Brie Clayton September 25, 2026
0 Comments
Hero image: Disclosure Day
Blackmagic Design p...
25/09/2026
How I Automated Social Media Resizing in After Effects - Free Script
Graham Quince September 25, 2026
0 Comments
If your text keeps getting cut off on...
25/09/2026
IBC has unveiled the winners of the prestigious IBC2026 Innovation Awards at an event held at the RAI Amsterdam on Sunday 13 September, honouring collaborative ...
25/09/2026
IBC2026 brought the global media, entertainment and technology community together for four days of business, innovation and collaboration at the RAI Amsterdam. ...
25/09/2026
Lightware testing has revealed that each USB-C port on Apple's new MacBook Neo consumes three of the seven USB tiers available under the USB specification, ...
25/09/2026
Lightware is supporting educational institutions in building modern learning environments by combining professional training with education-focused AV technolog...
25/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/09/2026
Long-Standing Customer Renews Multiyear Contract for VO's Secure Video Player, Content Security, and Device Monitoring Solutions
Viaccess-Orca (VO), a glob...
25/09/2026
Automate Video Progress Bars in After Effects - No Keyframes!
Graham Quince September 24, 2026
0 Comments
Learn how to create an automated video playb...
25/09/2026
Friday 25 September 2026
How to watch an unmissable weekend of women's football on Sky Sports and NOW
Sky Sports and NOW will broadcast seven live games f...
25/09/2026
Friday 25 September 2026
YAGA trailer released, coming exclusively to Sky and N...
25/09/2026
Watch this space: a new strategic direction for UK media. Arqiva has submitted its response to the Governments Green Paper on the future of television distribut...
25/09/2026
Want to be part of this year's Late Late Toy Show?
Final call for applications in search for this year's stars
The most wonderful night of the year is...
24/09/2026
Broadcast Management Group (BMG) is supporting Virginia Public Media (VPM), the ...
24/09/2026
RED Digital Cinema's RED V-RAPTOR [X] and RED V-RAPTOR XL [X] cameras with the Phantom Track feature are the first cameras to receive GhostFrame Pro Certifi...
24/09/2026
Bringing together the full family of networks, FOX Sports is also adding Tubi, F...
24/09/2026
Virginia Polytechnic Institute and State University (Virginia Tech) has unveiled...
24/09/2026
The blog collects SVG's reporting on AI across U.S. and European sports broadcasting
Since SVG launched the AI Innovation Lab in April to advance the devel...
24/09/2026
SVG's annual TranSPORT conference, which will be held on Tuesday, Oct. 20 in...
24/09/2026
The self-built Master Control Room has cut streaming operations incident-respo...
24/09/2026
Ortana Media Group, the software systems integrator behind the Cubix workflow platform, has connected AudioShake's audio separation models to ScorePlay thro...
24/09/2026
AudioShake has released Multi-Speaker 2.0, the company's newest Multi-Speaker model, which removes 75% more noise and offers 32% better separation of overla...
24/09/2026
By Jon Morgan, Founder and Executive Producer, Ryval Studios
For Major League B...