Rise in Spectrum Prices Means More Expensive, Lower Quality Broadband, GSMA Says
Rising prices in some spectrum auctions worldwide are leading to “more expensive, lower quality mobile broadband services,” the GSMA said in a report released Wednesday, “Effective Spectrum Pricing.” The average final prices paid in auctions increased 250 percent from 2008…
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to 2016, “with the most exorbitant price tags often influenced by policy decisions,” the GSMA said. “The era of judging the success of auctions based on headline-generating revenue figures is over,” said Brett Tarnutzer, GSMA head of spectrum and a former FCC official, in a news release. “The damage done to consumers -- and the wider digital economy -- by policies that artificially inflate spectrum prices has been too great. While auctions remain an effective means of awarding spectrum, regulators should adopt spectrum policies that focus on maximising the benefits for society, rather than simply driving up the cost of spectrum.”