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A new report published by the GSMA suggests that spectrum pricing in the developing world can be as much as three times more expensive than in developed markets, when the average monthly wage is factored in to the equation
Prohibitively expensive spectrum pricing is a key barrier to increasing mobile penetration levels in the developing world, according to a new report published by the GSMA.
The report found that governments across the developing world are helping to drive up the cost of mobile spectrum as a way of maximising revenues for the state, rather than prioritising the rollout of mobile communication networks.
Ironically, this short-termism will likely cost the region billions of dollars in lost revenues in the years to come.
“Connecting everyone becomes impossible without better policy decisions on spectrum,” said Brett Tarnutzer, head of spectrum, GSMA.
“For far too long, the success of spectrum auctions has been judged on how much revenue can be raised rather than the economic and social benefits of connecting people. Spectrum policies that inflate prices and focus on short-term gains are incompatible with our shared goals of delivering better and more affordable mobile broadband services. These pricing policies will only limit the growth of the digital economy and make it harder to eradicate poverty, deliver better healthcare and education, and achieve financial inclusion and gender equality,” he added.
According to the GSMA, over 4 billion people across the world currently remain unable to access mobile connectivity of any kind.
The report was released to coincide with the GSMA’s Mobile 360 conference, which is being held in Rwanda.
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You can download the GSMA’s report here.
