Spectrum Pricing and Renewals

Spectrum access determines the performance and capacity of mobile networks and has a direct impact on wider digital development. Government approaches to spectrum pricing play an important role in shaping operators’ ability to invest in network infrastructure, yet approaches vary widely between countries, creating significant differences in deployment outcomes.

Pricing methodologies that are centred on encouraging investment and innovation will help network development and benefit users. Spectrum licence renewals should also be rooted in the same principles to ensure continuation and sustainable growth of mobile networks.

Policy Positions

1. Spectrum should be priced at levels that benefit society

2. Spectrum prices should be derived from current market conditions

3. Spectrum pricing should reflect increasing capacity and performance requirements

4. Auctions should be properly designed with low reserve prices

5. Artificial scarcity impacts spectrum prices

6. Longer spectrum validity and certainty of licence renewal encourage long-term network investment

7. The cost of meeting obligations or investment commitments attached to licences should be reflected in their price