Background
Spectrum licensing terms affect investment in networks and the delivery of high-quality mobile services. The amount of spectrum made available, and the conditions under which it is licensed, drive the cost and quality of mobile services for end users.
Mobile is a capital-intensive industry requiring significant investment in infrastructure. Positive spectrum licensing policies, supported by a stable, predictable and transparent regulatory regime, can encourage investment in mobile. Such policies include roadmaps that outline the release of new spectrum in harmonised mobile bands, licences that carry a presumption of renewal at the end of their initial terms and the right terms and conditions for the use of any assigned spectrum (which are limited to guaranteeing coexistence among users). The use of technology-neutral spectrum should be encouraged through licences that enable spectrum to be redeployed as technology and market conditions change.
Debate
Spectrum licensing is at the heart of mobile services. What measures can policymakers implement to guarantee long-term investment and certainty?
Industry position
Effective spectrum licensing is critical to the future expansion of mobile services. Licensing frameworks should encourage investments so that mobile access is expanded, capacity increased and the range of services enhanced.
Recommendations on licence terms and conditions:
- Spectrum licences should be technology-and service-neutral (see below).
- Governments should adopt regulation that encourages the commercial provision of widespread and affordable access rather than imposing licence conditions.
- Authorities should limit conditions on the use of spectrum to those necessary, to guarantee coexistence.
- When conditions are imposed, any related costs should be deducted from spectrum costs.
- Mobile licences should have a minimum 20- year term to provide sufficient certainty to support mobile network investment, and a presumption of renewal at the end of the term.
Resources:
Best Practice in Mobile Spectrum Licensing, GSMA, 2022
Spectrum Licensing website, GSMA