SHERIDAN, WYOMING - December 10, 2025 - A new GSMA Intelligence report argues that European mobile operators could unlock billions in network investment, accelerate standalone 5G (5G SA) deployments and boost economic output-if policymakers adopt a more disciplined, long-term approach to spectrum pricing and renewals. As more than 500 spectrum licences come up for renewal over the next decade, the study frames spectrum policy as one of the most powerful levers for Europe's digital competitiveness.
Rising spectrum costs squeeze capex for 5G SA and beyond
The report, Spectrum pricing and renewals in Europe, traces how legacy auction and pricing strategies have driven up total spectrum costs over the past ten years. According to GSMA Intelligence, spectrum fees now absorb around 8% of recurring mobile operator revenues, directly limiting financial headroom for 5G roll-out, fibre backhaul and future network upgrades.
Under current policies and price levels, operators face spectrum costs of around €105 billion through 2035. The study suggests that smarter, investment-oriented renewal regimes could reduce this burden by as much as €30 billion, freeing capital for network modernisation at a critical moment in Europe's digital agenda.
Europe's 5G SA lag is a competitiveness risk, not a technology issue
The report lands as Europe struggles to keep pace with global 5G SA adoption. Today, only around 2% of Europeans use 5G standalone services, compared with 77% of users in China and roughly a quarter in the United States. This gap is emerging just as the EU's Digital Networks Act gives the bloc a chance to reset policy and align infrastructure investment with its broader industrial and sovereignty goals.
The licences due to be renewed over the next decade are not marginal. They underpin the 3G and 4G networks that still serve 470 million mobile internet users in Europe and will remain essential for coverage and capacity even as 5G SA scales. How these renewals are handled will influence the business case for densification, advanced 5G features and, ultimately, future 6G readiness.
Reform could fund full 5G SA upgrades and unlock GDP growth
GSMA's modelling argues that a more pragmatic approach to renewal terms and pricing could cut aggregate spectrum costs by roughly €30 billion up to 2035. According to the report, those savings alone could be sufficient to finance upgrades of all existing European 5G networks to standalone 5G, increasing speeds by up to 23% and generating as much as €75 billion in additional GDP over the next ten years.
To realise this potential, the association calls for a more harmonised European framework for licence renewals, moving away from short-term revenue maximisation and towards long-term network and productivity gains. A unified approach could also reduce regulatory uncertainty for cross-border operators and investors.
From "windfall" to strategic asset: a call to rethink renewal models
The GSMA's regulatory chief John Giusti stresses that the issue is not the principle of paying for access to spectrum, but the way renewals are structured. "La fourniture d'une connectivité de haute qualité aux citoyens européens et l'amélioration de la compétitivité du continent nécessitent des investissements considérables que de nombreux opérateurs ont du mal à trouver ou à justifier. Une réforme intelligente de la politique du spectre en Europe aura un impact immédiat et durable.
En particulier, les coûts de renouvellement sont une occasion évidente d'être plus intelligent dans la manière dont l'argent de l'industrie est attribué. Plutôt que de continuer à utiliser le spectre comme une aubaine, les décideurs politiques devraient être plus ambitieux dans leur approche des renouvellements et permettre à ces fonds d'être utilisés pour soutenir les objectifs numériques actuels de l'Europe".
For Giusti and the GSMA, the policy choice is clear: treat spectrum as a one-off fiscal windfall, or as a strategic production asset that underpins cloud, AI, industrial automation and Europe's broader digital transformation.
Strategic spectrum reform as part of Europe's digital toolbox
With hundreds of licences approaching expiry and the Digital Networks Act now in force, Europe has a time-limited window to align spectrum policy with its connectivity and industrial ambitions. For regulators and telecom ministers, the GSMA report positions renewal design-duration, price structures and conditions-as a high-impact tool to:
- De-risk 5G SA and future network investments,
- Enable operators to redirect capital from fees to infrastructure,
- And strengthen the continent's position against better-funded global competitors.
Telecom operators, equipment vendors and policy makers will now be watching closely to see whether upcoming renewal processes reflect this more investment-friendly philosophy or repeat the auction dynamics of the past decade.
For a deeper dive into the analysis and policy recommendations, refer to the GSMA Intelligence report Spectrum pricing and renewals in Europe via official GSMA channels.