High spectrum costs squeeze African telecom investment and digital growth

African mobile networks have grown rapidly over the past decade, but higher spectrum costs have hindered widespread internet use and network quality. According to a new GSMA report, mobile operators in Africa pay significantly more for less spectrum than operators worldwide. Spectrum costs consume 0.82% of mobile operators' revenue per 100 MHz in Africa, versus 0.66% elsewhere.

African operators hold about 570 MHz of spectrum below 7 GHz, 24% less than the global average of 750 MHz. Only nine African countries offer 20-year or indefinite spectrum licenses, compared with standard 20-year licenses across Europe, North America, and developed Asian markets. Lowering spectrum fees could free up capital for expansion, but lower fees alone do not guarantee better connectivity.

The report highlights a two-sided challenge: extending networks to underserved communities and making internet access affordable for those already covered. While mobile broadband coverage in Africa rose from 59% in 2015 to 92% in 2025, only 28% of the population used mobile internet in 2025, compared with 66% worldwide. Average mobile download speeds in Africa are just over 27 Mbps, against 98 Mbps globally, and users consume only about 3 GB of data per connection per month.

Egypt and Tanzania illustrate how spectrum policy impacts investment. In Egypt, rising spectrum costs, currency depreciation, and falling revenues hindered investment, while Tanzania auctioned spectrum at a discount to market prices and allowed operators to spread payments, potentially creating a more favorable environment for investment.