New analysis shows that high spectrum costs – now tripled compared to a decade ago – are slowing investment across Europe's mobile sector, while policy reforms could unlock up to €30bn.
Brussels, December 9, 2025 – Europe's mobile operators could unlock billions in potential infrastructure investments, accelerating standalone 5G (5G SA) deployments and boosting the continent's economic output, if policymakers take a smarter approach to spectrum policy, according to a new GSMA study.
The report, Spectrum pricing and renewals in EuropeWritten by GSMA Intelligence, it sets out how Europe's traditional approach to spectrum pricing has contributed to the investment pressures facing the mobile sector today. Analysis shows that total spectrum costs have increased considerably over the last ten years and now represent 8% of mobile operators' recurring revenues.
The findings come as Europe faces increasing pressure to catch up with its global peers. Currently, only 2% of Europeans use 5G SA services, compared to 77% in China and around a quarter in the United States. With the Digital Networks Act at stake, Europe has a timely opportunity to change course.
More than 500 spectrum licenses will need to be renewed in the next ten years. These licenses are crucial to existing coverage and services, largely covering the 3G and 4G networks that continue to serve the 470 million mobile internet users in Europe, and could be an important lever to unlock critical investments.
Under existing policies and at current prices, operators are expected to face spectrum costs of €105 billion until 2035. Reforming renewal approaches could reduce this by up to €30 billion, and even moderate adjustments could still generate savings of around €20 billion.
These savings could be used to partly address the current investment gap in Europe. If €20 billion to €30 billion were unlocked through smarter spectrum renewal policies, operators could potentially cover the work needed to upgrade all existing 5G networks to 5G SA, delivering up to a 23% increase in speeds and generating up to €75 billion in additional GDP over the next decade.
But achieving these savings will require policy reform and a unified European approach to licensing and renewals.
John Giusti, chief regulatory officer at the GSMA, comments: “Providing high-quality connectivity to Europe's citizens and improving the continent's competitiveness requires huge investment that many operators are struggling to achieve or justify. Smart reform of Europe's spectrum policy will have an immediate and lasting impact.
“In particular, renewal costs are a clear opportunity to be smarter in how industry money is allocated. Rather than continuing to use spectrum as a windfall, policymakers should be more ambitious with their approach to renewals and allow these funds to go towards supporting Europe's current digital goals.”
The road to 6G
While Europe remains behind on its 5G journey, spectrum decisions made now will also have a direct impact on the launch and growth of the next generation of connectivity in the 2030s, 6G.
Based on expected demand, Europe must ensure that 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 standards. The report makes the following recommendations for EU policymakers to consider when prioritizing the continent's digital future, with next year's Digital Networks Act being an important opportunity to implement meaningful reform:
- Prioritize improving certainty and investment incentives in renewal assessments
- Simplify and streamline the renewal process by applying administrative extensions
- Automatically renew licenses with indefinite duration
- Do not reserve spectrum for a new entrant or for localized use
- Renew licenses well before their expiration date.
- Collaborate with the mobile industry to achieve well-defined and achievable connectivity objectives where necessary.
Click here to read the full report.
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