GSMA, the global telecoms industry body, has urged African governments to cut the cost of radio frequency spectrum, arguing the expense is holding back investment in faster mobile networks. Reforms could add more than $120 billion to the African economy by 2035, expand 4G and 5G coverage, and raise productivity, it estimated.
The GSMA said spectrum charges as a portion of annual revenue are significantly higher than the global average for African operators — Botswana, Eswatini, Mozambique, and Zambia were named among the pricier countries. The push for cheaper deals, contained in a report from GSMA’s research wing, comes as more than $10 billion worth of licenses will need to be renewed within the next decade, just as many African governments are struggling to raise revenue and contain debt. In several markets, spectrum auctions have become significant sources of state revenue, creating tensions between governments’ fiscal goals and operators’ calls to use them as a connectivity tool.
