#None #GSMA #5G #mobile investment

Introduction

A new report from the GSMA highlights a pressing issue in Europe: the potential for intelligent spectrum policy reforms to significantly reduce the investment burden on mobile operators. As Europe strives to keep pace with global competitors, this timely study delves into the spectrum pricing landscape and offers insights into how policy adjustments could accelerate the continent's 5G rollout and overall economic performance.

Current State of Spectrum Pricing in Europe

The GSMA's report, titled "Spectrum Pricing and Renewals in Europe," outlines the long-standing practices in Europe regarding spectrum pricing that have contributed to the investment challenges faced by the mobile sector today. Over the past decade, the total costs associated with frequencies have surged, now accounting for approximately 8% of the recurring revenues for mobile operators. With only 2% of Europeans currently using 5G Standalone (5G SA) services, compared to 77% in China and about 25% in the U.S., this discrepancy underscores the urgency for reform.

The Importance of Policy Reform

Highlighting the challenges, the report emphasizes that Europe has the opportunity to amend its approach through the upcoming Digital Networks Act. This legislation serves as a pivotal moment to reassess how spectrum licenses are allocated and renewed. Over the next decade, more than 500 frequency licenses will require renewals, which are vital for sustaining existing network coverage, particularly in 3G and 4G networks that support approximately 470 million mobile internet users in Europe.

Financial Implications

Currently, operators are projected to face frequency costs totaling €105 billion by 2035 under existing guidelines and prices. Notably, a reform in renewal processes could potentially reduce these costs by up to €30 billion. This financial relief is not merely about cutting expenses; it could enable operators to upgrade their existing 5G networks to 5G SA, leading to speed enhancements of up to 23% and an additional GDP boost of up to €75 billion over the next decade.

A Unified European Approach

Achieving these savings hinges on political reform and a coherent European strategy for license allocation and renewal. John Giusti, Chief Regulatory Officer at GSMA, stated, "Providing high-quality connectivity for European citizens while enhancing the continent's competitiveness requires substantial investments that many operators find difficult to raise or justify. Smart reform of European spectrum policy will have immediate and lasting impacts." He further underlined the need for policymakers to view frequency renewals as a strategic opportunity, rather than a random occurrence, thus allowing the industry to better utilize its resources toward achieving ongoing digital objectives.

Conclusion

In summary, the current report by the GSMA serves as a wake-up call for policy-makers in Europe. By embracing smarter spectrum policies, Europe could unlock not only critical investments needed for advancing its mobile infrastructure but also stimulate wider economic growth through enhanced connectivity. As the digital landscape evolves, proactive reforms in spectrum strategies are essential to not only bridge the gap with global competitors but to also fulfill the digital needs of European citizens in a rapidly changing world.