The GSMA has urged governments worldwide to reduce spectrum prices, warning that high fees are choking the telecoms industry and threatening long-term economic development.

In a new report, the industry body revealed that spectrum prices have not fallen in line with operator revenues over the past decade, limiting the ability of mobile network operators to invest in critical infrastructure.

While consumer prices have declined, the overall financial burden on operators has sharply increased. According to the GSMA, cumulative global spectrum costs now account for 7% of operator revenues – a 63% rise over the last ten years.

At the same time, average revenue per megahertz has dropped by up to 75% in some bands since 2014. To meet rising demand for bandwidth, operators have expanded their spectrum holdings by 80% over the same period, further driving up total costs.

Consumers, meanwhile, have benefited from a significant drop in data prices. The GSMA noted that the cost of a gigabyte (GB) of data has plummeted by 96% between 2014 and 2024.

GSMA Director General Vivek Badrinath said: “The mobile industry sits at the heart of the digital economy, enabling services and opportunities that transform lives. But a dollar can only be spent once, and high spectrum costs can choke investment at a time when the need for affordable, reliable connectivity has never been greater.

“Governments and regulators must prioritise spectrum pricing that reflects market realities and fosters long-term digital growth. By ensuring spectrum is affordable, they can unlock faster network expansion, better service quality, and greater digital inclusion for all of their citizens.”