February 22, 2017
The GSMA has published ‘Effective Spectrum Pricing’, a research report on spectrum pricing, including the impact on consumers.
The report, developed in collaboration with NERA Economic Consulting, links high spectrum prices to more expensive, lower quality mobile broadband services. It also estimates that, due to the increased data prices, consumers lost out on economic benefits worth US$250 billion across selected markets.
Average final prices paid in auctions were found to have risen 250 per cent from 2008 to 2016 with the most exorbitant price tags often influenced by policy decisions.
The study found that although price outcomes for some spectrum awards remain moderate, the upward trend in average prices was driven by a growth in the number of exceptionally high price auction outcomes. Statistical evidence shows the impact on consumers and links high price outcomes with:
The report highlights four key pricing policy recommendations for countries that want to adopt spectrum policies that focus on maximising the benefits for society: