Investment-friendly spectrum policies on the rise

By: Luiz Felippe Zoghbi

In recent years, regulators have increasingly recognised the adverse effects of inadequate spectrum policies. There is therefore a growing focus on creating an investment-friendly environment that helps power the continued success and expansion of mobile connectivity. 

Addressing usage and coverage gaps

More people than ever before are now accessing the internet through mobile devices. By the end of Q3 2024, the number of people using mobile internet increased to 4.7 billion people (almost 59% of the global population). However, significant digital divides persist and closing the usage gap is more crucial than ever.

Effective spectrum policies can help address usage and coverage gaps while at the same time helping drive investment. The amount and type of spectrum available has a direct impact on all these aspects. Low, mid- and high bands’ distinct characteristics drive different spectrum needs:

• While demand always outstrips supply in low bands, adding 600      MHz will raise download speeds by 30-50% in rural areas.
• 2 GHz of mid-band per market are required to provide city-wide capacity and meet ITU’s requirements for IMT-2020.
• 5 GHz of high-band spectrum per market will deliver pioneering ultra-fast speeds and the lowest latencies in high-capacity mmWave hotspots.

Starting with a roadmap

To roll out capacity across all three ranges, a spectrum roadmap based on acknowledged best practice needs to be in place to deliver certainty and support investment planning. 

It should also include making all bands technology neutral, enabling mobile operators to refarm spectrum used for 2G or 3G to 4G and 5G at a pace that’s driven by market demand. This maximises spectral efficiency in a technical sense and supports an efficient use of spectrum in a more general term. Importantly, technology neutrality should not incur fees as charges for changing licences to be technology neutral risk delaying the benefits of a new technology to end-users.

The importance of mid-band spectrum

Access to more mid-band spectrum is also vital. Mid-bands have and will continue to be the main delivery mechanism of 5G. They will drive an increase of more than $610 billion in global GDP in 2030, producing almost 65% of the overall 5G socio-economic benefits. 

Following WRC-23, 6 GHz has become the harmonised home for the future of mid-band capacity. Timely availability of 6.425-7.125 GHz, at reasonable conditions and price, will drive cost-efficient network deployment, help lower the broadband usage gap and support digital inclusion. Countries choosing a different path will find it impossible to reach the above mentioned 2 GHz of mid-band spectrum requirement, and, as a result, mobile broadband performance will suffer.

Getting spectrum pricing right

Successful spectrum policies also have other vital aspects. Of particular importance is spectrum pricing. There is strong evidence that high spectrum prices have a negative impact on the speed of network deployments, the quality of services, and affordability, which are critical factors in increasing digital inclusion.

Fortunately, attitudes towards spectrum pricing have slowly changed and there is a growing realisation among regulators and policymakers that spectrum pricing best practice is important for digital development. The high costs demanded for spectrum licences in the past are being replaced by new assignment approaches that propose investment commitments. These are given in return for more rational prices, leading to better quality of services, expanded coverage and faster adoption. 

Governments and industry need to work

For all the successes we have seen so far, the long-term success of mobile connectivity is not set in stone. The decisions made on low, mid- and high bands in the next couple of years will have a profound impact on how 5G and beyond can expand and keep up with date demand in cities as well as rural areas. Governments and industry need to work together on this – through WRC-27 and in national processes – to ensure that future networks don’t fall short of their promise.

About the Author 

 Luiz works as Spectrum Engagement Director at the GSMA towards the global and regional advance of spectrum issues such as licensing, roadmaps, pricing, sharing, synchronisation, coverage and 5G international advocacy. Luiz leads the GSMA campaign to gain access to harmonised spectrum for mobile broadband, working with a team of regional experts for the delivering of spectrum policy and licensing best practice to key markets across the globe.

Luiz joined the GSMA in 2018 as Policy and Future Spectrum Project Manager to lead the delivery of the World Radiocommunication Conference 2019 (WRC-19) campaign and coordinate the Future Spectrum executive group. Previously, Luiz has worked in the mobile industry for almost 10 years, lastly as Spectrum Specialist at TIM Brasil in Regulatory Intelligence, where also had been an intern, analyst, consultant and senior consultant. He has acted as the Strategic Leader for the implementation of 700 MHz LTE and Digital TV Migration in Brazil, and as a board member in two associations: ABR Telecom (wholesale and data integration) and Seja Digital – EAD (700 MHz).

Luiz holds an M.B.A. at the State University of Rio de Janeiro and a Masters (MSc) in International Management at the Universite D’Angers, France. He has graduated in Business Administration, splitting his studies between the Catholic University of Rio de Janeiro (PUC-Rio) and the Jon M. Huntsman School of Business at Utah State, with an extension diploma in International Management at the University of Victoria, Canada.