Background
Growing data traffic leads to a greater spectrum requirement for mobile services. These increased requirements can be supported by spectrum management policies that improve the efficiency of spectrum use and ensure it is properly implemented, even in areas where coverage is required but there is no commercial benefit. However, completely clearing new frequency bands for future mobile use has become increasingly difficult.
Spectrum sharing, on the other hand, allows mobile operators to access the same frequency bands under certain conditions, improving overall spectrum efficiency. When two operators share spectrum, they agree to use a licensed band jointly, often to reduce costs and extend coverage, particularly in less populated or rural areas. Effective operator-to-operator sharing supports network expansion, reduces duplication of infrastructure and promotes better use of scarce spectrum resources without compromising competition.
Spectrum leasing involves a licence holder temporarily transferring usage rights to another party without relinquishing ownership. This gives operators the flexibility to manage capacity needs and expand services in specific areas or time frames. Leasing arrangements must be regulated to ensure transparency and protect competition.
Spectrum trading refers to the permanent transfer of spectrum usage rights between entities, usually through a market-based mechanism. Trading helps ensure spectrum is used by those who value it most and can use it efficiently, which encourages investment and innovation. Clear rules, regulatory approval and a transparent process are essential elements of effective spectrum trading.
Debate
Spectrum sharing can make spectrum use more efficient and create more value for consumers, but complex frameworks may hamper uptake. How can governments create a simple sharing framework that still ensures the robust and transparent definition of rights?
Resources
Best Practice in Mobile Spectrum Licensing, GSMA, 2022
Harnessing Spectrum Diversity, GSMA, 2025
Industry Position
Spectrum sharing reduces the spectrum shortages faced by some mobile operators while ensuring valuable spectrum does not lie fallow. It enables more intensive spectrum use and higher volumes of services, improves service quality and lowers the costs of service provision. All this supports greater capacity and more affordable services.
Spectrum leasing and trading enable the parties with the best information on the value of spectrum to determine its price. To justify the sale, a buyer or lessee needs to create more value from the acquired spectrum than the seller.
Voluntary leasing and trading also reduces risks for mobile operators, since they can sell or lease unused spectrum while still acquiring new capacity as they grow. The ability to trade andlease licences can ensure that spectrum is used efficiently without additional charges needing to be imposed by government.
Trading is more likely when there is substantial available spectrum, when future spectrum and the regulatory framework are predictable and when there is a need to support network deployment by the lessee, such as for verticals.
Recommendations on spectrum sharing, leasing and trading:
- Licensing authorities should allow voluntary spectrum sharing, leasing and trading among mobile operators and facilitate these mechanisms through clearly defined spectrum rights, long licence terms and limited administrative costs.
- Authorities should only be notified of the agreements taking place so that it is clear who holds spectrum usage rights. Notification enables authorities to assess whether a proposed trade would pose any risks to competition.
- Before a formal spectrum secondary market framework is established, authorities should be prepared to assess proposals for sharing, leasing and trading subject to consultation, and consider risks to competition or of interference.
- Transparent and well-timed licence renewal processes, and information on spectrum availability, pricing and conditions, will facilitate sharing, leasing and trading.
- Competition issues should be assessed based on the specific circumstances of each sharing, leasing and trading agreement.
- Long licence terms allow the buyer or lessee of the rights to invest in using the spectrum.
- Licensed and unlicensed spectrum can have complementary roles in connectivity. Licensed spectrum is typically used to cover wide areas and reach a high number of users, while unlicensed use can support local solutions.