{"id":5520,"date":"2014-02-19T14:02:31","date_gmt":"2014-02-19T14:02:31","guid":{"rendered":"https:\/\/www.gsma.com\/newsroom\/?p=5520"},"modified":"2026-05-21T09:00:14","modified_gmt":"2026-05-21T08:00:14","slug":"gsma-report-spectrum-licence-uncertainty","status":"publish","type":"post","link":"https:\/\/www.gsma.com\/newsroom\/press-release\/gsma-report-spectrum-licence-uncertainty\/","title":{"rendered":"NEW GSMA REPORT REVEALS HOW SPECTRUM LICENCE UNCERTAINTY JEOPARDISES MOBILE SERVICES IN LATIN AMERICA"},"content":{"rendered":"

Greater Certainty and Longevity for Spectrum Licensing is Vital for Ongoing Investment in Mobile Networks Across the Region<\/em><\/p>\n

London:<\/strong> The GSMA today released findings of a new report, \u201cLicence Renewal in Latin America\u201d, which highlights the solutions-and-impact\/connectivity-for-good\/external-affairs\/climate-action\/ of uncertainty surrounding the continuity of spectrum licences for many countries in the region. The study finds that such uncertainty can drive mobile operators to reduce their capital expenditure by as much as 67 per cent, which in turn could significantly delay the deployment of new mobile services.<\/p>\n

\u201cIt is vital that governments and regulators in Latin America communicate a clear process for the renewal of spectrum licences,\u201d said Tom Phillips, Chief Regulatory Officer, GSMA said. \u201cLicence renewal terms for existing spectrum holders should be agreed at least three to four years before a licence expires, in order for operators to ensure ongoing investment in the latest mobile services.\u201d<\/p>\n

A number of the original 2G spectrum licences, acquired in the 1990s, are due to expire within the next five years in many Latin American countries; namely Bolivia, Chile, Costa Rica, the Dominican Republic, Panama, Uruguay and, most urgently, Colombia. As mobile operators are unable to assume they will have the ability to renew their licence at the end of its term, they may be compelled to progressively reduce investment in their networks. The GSMA\u2019s new report illustrates the extent to which this lack of certainty can impact operators\u2019 investment plans.<\/p>\n

Knock-on Effect of Expiry of Spectrum Licences for Mobile<\/strong>
\nThe loss of access rights to mobile spectrum also impacts consumers, in terms of potential price increases, a reduction in the quality of their mobile services or, in the extreme, a loss of service altogether. This situation creates challenges for governments, as it can impact the achievement of their own ICT goals and create an unstable market structure.<\/p>\n

Urgent Call to Clarify the Licence Renewal Process <\/strong>
\nThe situation for Colombian mobile operators Claro and Movistar is particularly critical as their licences will expire on 31 March 2014 and the terms and conditions for renewal are not yet clear. The report identifies best practice that governments should consider when renewing spectrum licences, including a collaborative and consultative approach with operators. Any potential new conditions should be carefully reviewed in order to determine their economic cost, which should be factored into the valuation of spectrum at the time of licence renewal.<\/p>\n

\u201cSpectrum re-licensing must be timely and carried out in consultation with the mobile industry and in an open and transparent way,\u201d continued Phillips. \u201cThe cost of renewing spectrum usage rights should be based on achieving the best outcome for society – one which maximises the economic and social benefits of the mobile industry – rather than on maximising short-term revenue for government.\u201d<\/p>\n

The GSMA is calling for greater clarity on the following:<\/p>\n