GSMA Sees €30 Billion Opportunity in Spectrum Pricing Reform

New research from the GSMA has found that European policymakers could ease investment pressure on the region’s mobile operators by reforming spectrum pricing and renewal rules. The association claims that it could potentially unlock up to €30 billion for network upgrades.

The study warned that spectrum costs have tripled over the past decade, now accounting for 8% of operators’ recurring revenues. This creates a vicious cycle that constrains network investment at a time when Europe is already lagging behind global peers, including North America, the Gulf states, and Greater China on next-generation connectivity. Only 2% of Europeans currently use standalone (SA) 5G services, compared with 77% in China and roughly a quarter in the US.

More than 500 spectrum licences are due for renewal in Europe over the next ten years. These licences underpin existing 3G and 4G networks that serve much of the continent’s 470 million mobile internet users and will be central to future coverage and capacity. Under existing policies, operators are on track to pay about €105 billion in spectrum costs through 2035. The GSMA argued that high spectrum fees are constraining investment, with the EU's upcoming Digital Networks Act (DNA) offering a timely opportunity to act.

The industry association estimates that reforming renewal frameworks could cut costs by up to €30 billion, while even moderate changes could unlock around €20 billion. The report said those savings could be redirected towards upgrading all existing 5G networks to SA 5G, delivering speed increases of up to 23% and potentially adding as much as €75 billion to Europe’s GDP over the next decade.

“Providing high-quality connectivity to Europe’s citizens and improving the continent’s competitiveness requires a lot of investment that many operators are struggling to source or justify,” said John Giusti, chief regulatory officer at the GSMA. “Rather than continuing to use spectrum as a windfall opportunity, policymakers should be more ambitious with their approach to renewals and allow these funds to be directed to support Europe’s ongoing digital goals.”

Looking ahead, the report also highlighted that spectrum decisions today will shape the road to 6G. The GSMA warns that Europe will need at least 2GHz of mid-band spectrum by 2030 to avoid network congestion once 6G starts to roll out.