Spectrum policies in Latin America are impacting the delivery of quality mobile services and resulting in inflated prices across the region, according to a new report from the GSMA. The industry body said regulators should adopt spectrum policies that focus on maximising long-term benefits for society, rather than driving up the cost of spectrum for short-term gain. In Latin America, steep spectrum costs, which are almost twice as high as in Europe, put serious financial pressure on the industry, leading to prices that are around 60 percent higher than in Europe.

High prices for capacity spectrum at auctions are largely due to policy decisions rather than market forces, with regulators effectively setting the price for spectrum up front, according to the report. “Latin American countries that do not make spectrum available for 4G and 5G networks and artificially inflate the price are holding back their digital economies, not closing the digital divide and hurting consumers,” said GSMA Latin America head Sebastian, adding that “operators require fair access to sufficient radio spectrum in order to deliver high-quality and affordable mobile broadband services."