For countries that want to reap the rewards of mobile connectivity, optimising spectrum usage and licensing continues to be a crucial success factor. That includes maximising the use of existing resources using tools such as technology-neutral spectrum licensing.

The need for additional spectrum to meet coverage and capacity expectations for 4G and 5G services is driving the refarming of spectrum from legacy technologies worldwide. Technology-neutral spectrum licensing (also referred to as technology neutrality) is crucial to allow mobile operators to refarm spectrum used for legacy networks (2G and 3G) for 4G and 5G services at a pace driven by market demand.

Like with all policy measures, how countries implement technology-neutral spectrum licensing directly impacts what happens next. Success is not a foregone conclusion but the result of making the right decisions. Importantly, technology neutrality should not incur fees as charges for changing licences to be technology neutral risk delaying the benefits of new technology to end-users.

The impact, when done right, can’t be understated. Users benefit from better mobile broadband coverage, higher data speeds and lower mobile data prices than would otherwise be the case. For example, we estimate that connecting all of Africa to 4G by 2030 would add $75 billion in economic value, adding 5.5% to projected growth. 

It is also important to remember that technology neutrality does not mean mobile operators can do anything they choose within a frequency band; regulations govern the deployment of radio communications networks, including, for example, those designed to protect other spectrum users and ensure that transmission power and radiation limits are not breached.

An important trend closely linked to technology-neutral spectrum is legacy network sunsets. Between 2015 and mid-August 2023, a total of 91 networks were shut down, of which 43 were 2G networks and 48 were 3G networks. At least 148 networks will be shut down between Q4 2023 and 2030, based on announced plans from operators.

The rationale for legacy network sunsets varies, with factors including refarming spectrum for 4G/5G services, optimising network operations (with potential capex and opex savings), rationalising device portfolios and mitigating the risks associated with the slowing improvements to and maintenance of legacy equipment.

Again, making the right decisions directly impacts what happens next. Importantly, the process should be driven by market conditions, rather than mandated. This calls for close collaboration between regulators, mobile operators and other ecosystem players, to identify and implement the enablers of a smooth phasing out of legacy networks in the region.

So, why is technology-neutral spectrum such a vital part of legacy network sunset efforts? Without it, the freed-up spectrum can’t be used efficiently, and potential socio-economic benefits are simply lost.

One more related aspect for countries that want to maximise the benefits of mobile connectivity is service neutrality. Importantly, service neutrality is necessary to unlock the potential of technology-neutral licensing. Where the latter exists but not the former, operators are still restricted in their ability to refarm their spectrum holdings for newer technologies and other types of service in a way that maximises the efficient use of spectrum and meets market demand for new services.

In the end, implementing technology neutrality in countries where it still isn’t allowed should be an easy decision. The socio-economic benefits make it a win-win for governments and all mobile data subscribers, consumers as well as enterprises.

To learn more, download the report here.