M360 Africa – spectrum pricing report launch
As part of GSMA’s M360 Africa, a new spectrum pricing report was launched which highlighted the correlation of government policies and mobile broadband access for consumers.
The report, Spectrum Pricing in Developing Countries, is a global report which highlights the following key findings:
- According to the latest figures from GSMAi, 4 billion people are still disconnected and 3.9 billion of these are living in developing countries – meaning they cannot access the social and economic benefits that the mobile internet provides
- The GSMA’s Spectrum Pricing in Developing Countries report identifies that take-up of mobile broadband services is being hindered by high spectrum prices
- The price of spectrum is three times more expensive in developing countries compared to developed
- High spectrum prices are directly linked to poorer coverage and more expensive and lower quality mobile broadband services
- This makes high spectrum prices a major roadblock to increasing mobile penetration
Governments are actively increasing spectrum prices to maximize state revenues.
- Reserve prices in spectrum auctions are more than five times higher in developing markets than developed
- High spectrum prices, combined with the lower incomes in developing markets make it a challenging environment for operators to invest in
- Limiting the growth of the digital economy will hinder efforts to reduce poverty, and improve healthcare, education, financial inclusion and gender equality
The full report and associated press release can be viewed here.