Study: Smarter spectrum policies could unlock €30bn in investment
December 9, 2025
Europe’s mobile operators could unlock billions in potential infrastructure investment, accelerating 5G standalone (5G SA) rollouts and boosting the continent’s economic output, if policymakers take a smarter approach to spectrum policy, according to a study from the GSMA.
The report, Spectrum pricing and renewals in Europe, written by GSMA Intelligence, sets out how Europe’s long-standing approach to spectrum pricing has contributed to the investment pressures facing the mobile sector today. Analysis shows that total spectrum costs have risen sharply over the last ten years, now representing 8 per cent of mobile operators’ recurring revenues.
The findings come as Europe faces mounting pressure to catch up with global peers. Only 2 per cent of Europeans use 5G SA services today, compared with 77 per cent in China and around a quarter in the US. With the Digital Networks Act in play, Europe has a timely opportunity to shift course.
More than 500 spectrum licences are due for renewal over the next ten years. These licences are crucial for existing coverage and services, largely covering 3G and 4G networks that continue to provide for Europe’s 470 million mobile internet users, and could be a major lever for unlocking critical investment.
Under existing policies and at current prices, operators are expected to face spectrum costs of €105 billion through 2035. Reforming renewal approaches could reduce this by up to €30 billion – and even moderate adjustments could still deliver savings of around €20 billion.
These savings could be used to address in part Europe’s ongoing investment gap. If €20 billion or €30 billion were unlocked by smarter spectrum renewal policies, operators would potentially be able to cover the work needed to upgrade all existing 5G networks to 5G SA – bringing increased speeds of up to 23 per centand driving up to €75 billion in additional GDP over the next decade.
John Giusti, Chief Regulatory Officer at the GSMA, commented: “Providing high-quality connectivity to Europe’s citizens and improving the continent’s competitiveness requires a lot of investment that many operators are struggling to source or justify. Smart reform of Europe’s spectrum policy will have an immediate and enduring impact. In particular, renewal costs are a clear opportunity to be smarter in how industry money is assigned. Rather than continuing to use spectrum as a windfall opportunity, policymakers should be more ambitious with their approach to renewals and allow these funds to be directed to support Europe’s ongoing digital goals.”
The road to 6G
While Europe continues to lag in its 5G journey, spectrum decisions made now will also directly impact the launch and growth of the next generation of connectivity in the 2030s, 6G.
Based on expected demand, Europe needs to ensure mobile operators have at least 2 GHz of mid-band spectrum by 2030 to ensure networks do not become congested, while 3 GHz may be needed by 2035.
With sustainable spectrum pricing for the 6G era, the investment cycle can be strengthened and allow Europe to align with global connectivity norms. The report makes the following recommendations for EU policymakers to consider in prioritising the continent’s digital future, with next year’s Digital Networks Act a significant opportunity to enact meaningful reform:
- Prioritise enhancing certainty and investment incentives in renewal assessments
- Simplify and optimise the renewal process by applying administrative extensions
- Automatically renew licences with an indefinite duration
- Do not set aside spectrum for a new entrant or for localised use
- Renew licences well in advance of the licence expiry date
- Engage with the mobile industry to meet well-defined and achievable connectivity targets where they are needed
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