Spectrum pricing in Latin America deserves more attention
The GSMA has published “Effective Spectrum Pricing in Latin America”. This report takes a closer look at spectrum policies in Latin America. How they are impacting the delivery of mobile services to consumers and businesses in the region.
The report is based on spectrum pricing trends in 15 countries. It underscores how decisions made by governments and regulators can have a negative impact on the quality and cost of spectrum pricing in Latin America. This, in turn, impacts the cost and quality of mobile broadband services in the region. The report also makes policy recommendations that aim to help countries make the most of their spectrum resources.
Radio spectrum is used to carry information wirelessly for many vital services. This is especially relevant in Latin America, where many users do not have access to (or cannot afford) fixed broadband and rely on mobile networks to access the Internet.
Demand for this precious national resource is so great that regulators take great care to ensure it is used as efficiently as possible. Efficient use helps to ensure that the socioeconomic benefits that spectrum enables can be maximised.
Recommendations on spectrum pricing in Latin America
To make this happen, the report makes four key policy recommendations:
1. Set modest reserve prices
2. Bring spectrum to market in a timely manner
3. Avoid onerous licence conditions
4. Adopt best practice in award design
The full report talks more about why these recommendations make sense. However, the advice for spectrum pricing in Latin America that binds all these together is prioritising long-term benefits, rather than driving up the cost of spectrum for short-term gain.