• ITU clocks 160 years, says 2.6b people still offline
Telecommunications advocacy body, GSMA, has declared that spectrum cost is choking network investment globally.While spectrum is described as the oxygen of telecoms services, GSMA, in a report into the price of the service for mobile services, revealed a sharp rise in its cost relative to the revenue generated from it over a 10-year period, a factor cited as constraining infrastructure spending.
Its Global Spectrum Pricing Report showed that while the average cost of spectrum had fallen since 2014, a need for operators to increase their holdings to cope with demand and a 60 per cent drop in revenue generated per MHz had ramped up the cost burden.
According to the global agency, in 2023, global cumulative spectrum fees accounted for seven per cent of total operator revenue, a 63 per cent increase on 2014 figures.
The GSMA argued that the proportionately high cost of acquiring spectrum restricts “operators’ ability to invest in expanding and improving mobile networks, particularly 4G and 5G,” asserting: “Higher spectrum costs correlate directly with lower network coverage and reduced mobile speeds.”
Commenting on the report, GSMA’s Director-General, Vivek Badrinath, added: “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.”
Among the factors cited as continuing to inflate spectrum costs were artificially high reserve prices, creation of artificial scarcity and “onerous” licence obligations.
In the recent 5G auction in Nigeria, where two licenses of 100MHz each in the 3.5GHz spectrum band were auctioned, MTN Nigeria and Mafab Communications Limited paid $273.6 million for their respective licenses.
MTN paid an additional $15.9 million to secure the preferred Lot 1 spectrum. This brought the total revenue generated from the exercise to $547.2 million.
In the second Licensing Round (January 2023), Airtel Networks Limited emerged as the sole bidder for one lot of 100 MHz in the 3.5GHz spectrum band.
It paid $316.7 million, which included the $273.6 million licence fee and an initial intention-to-bid deposit. Now in its third, 5G traction has been slow, with only about 4.6 million of the 172 million active subscribers having access. This is after the licensees have collectively coughed out $863.9 million for the service in the country.
MEANWHILE, the International Telecommunications Union (ITU) is celebrating 160 years of enabling global telecommunications. It clocked 160 years on May 17.
Established since 1865, ITU has shaped every major advancement in communication: from the telegraph to the telephone, from satellites to the mobile phone, and from the Internet to artificial intelligence, and more.
ITU’s Secretary-General, Doreen Bogdan-Martin, who noted that this year’s World Telecommunication and Information Society Day holds significance with the 160th anniversary of the union, said: “We have seen a great deal of progress in 16 decades with more people connected than ever before, yet one-third of humanity remains offline.
“World Telecommunication and Information Society Day is a moment to reflect on the work still ahead.” According to her, this year – and every year – “we need to ensure that everyone, especially women and girls, benefits fully from the opportunities brought by technology.”
ITU thanked its 194 member states, including Nigeria and the over 1,000 organisations from the private sector, academia and the technical community that work every day to ensure that the technologies “shaping our shared digital future serve everyone, everywhere.”
