The GSMA's report illustrates a troubling trend where average spectrum prices have not adjusted proportionately with operator revenues, forcing mobile network operators (MNOs) to endure escalating costs. Despite drops in consumer prices for mobile services, the cumulative burden from spectrum costs has surged, accounting for 7% of MNO revenues, up 63% over the past decade. While operators increased spectrum holdings by 80% to meet rising bandwidth demands, revenue generated per megahertz plummeted 60%. This imbalance constrains operators' capabilities to enhance network infrastructures, notably for 4G and 5G, ultimately impacting consumer services and digital economic development.
The GSMA report highlights that while spectrum costs have increased significantly, revenue per megahertz has drastically fallen, creating a severe financial imbalance for mobile operators.
Higher spectrum costs are directly linked to poorer network coverage and reduced mobile speeds, which negatively affect consumers and hinder the growth of digital economies globally.
Global cumulative spectrum costs now account for 7% of operator revenues, marking a 63% increase over the past decade despite overall declines in mobile service prices.
The study underscores that while gigabyte data prices have decreased significantly, mobile network operators are unable to invest effectively in infrastructure due to rising spectrum costs.
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