Telecoms group urges cuts to spectrum cost in Africa
Reforms could add more than $120 billion to the African economy by 2035, expand 4G and 5G coverage, and raise productivity, GSMA estimated.
The GSMA, a global telecoms industry body, has called on African governments to reduce the cost of radio frequency spectrum, arguing that current expenses are hindering investment in faster mobile networks. According to the organization, such reforms could inject more than $120 billion into the African economy by 2035, expand 4G and 5G coverage, and boost productivity.
The GSMA highlighted that spectrum charges as a percentage of annual revenue are significantly higher than the global average for African operators, with Botswana, Eswatini, Mozambique, and Zambia among the more expensive countries.
The call for cheaper spectrum deals comes from GSMA’s research wing, ahead of over $10 billion worth of licenses needing renewal within the next decade. This period coincides with many African governments grappling with revenue generation and debt reduction challenges. In several markets, spectrum auctions have become substantial sources of state revenue, creating tensions between governments' fiscal objectives and telecom operators' demands to utilize them as a connectivity tool.
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