Weekly Wrap: What impact do spectrum licence extensions have on competition?

Earlier this week, the National Association of Telecommunications Operators (Aotec), which represents smaller telecoms companies in Spain, announced a series of lawsuits demanding that the courts cancel the regulator’s 2024 decision to extend current spectrum licences for 10 years. The association claims this distorts the market and fails to protect competition.

Deciding how to deal with expiring spectrum licences is becoming more important than ever, as many legacy 2G and 3G licences begin to reach the end of their terms. Mobile industry association the GSMA has crowned 2025 the “year of spectrum renewals”, claiming that over 30 countries will see expiring licences in various bands including  900 MHz, 1800 MHz and 2.1 GHz.

Spain is not alone in choosing to extend licences rather than hold a new auction. Germany controversially decided to do so earlier this year. This was despite its fourth entrant, 1&1, clamouring for more spectrum.

Deciding whether to extend licences or hold an auction is an area where spectrum policy overlaps with competition policy. After all, spectrum auctions are a once-in-a-decade opportunity for a new entrant to join the mobile market.

There is a good argument to be made for foregoing an auction and extending licence terms. Longer licences bring more certainty for mobile operators, which could in turn boost investment. Besides, most auctions end up assigning spectrum to the same three or four players anyway.

But if renewals become the new norm, regulators will need to weigh the consequences. What impact will this have on the competitiveness of the mobile market, and does a renewal always result in an efficient use of spectrum?

Here’s what else we’ve covered this week:

• A new report by a PMSE organisation suggests that forcing PMSE users to vacate the 600 MHz band would seriously harm world-famous TV shows and events.
• Concerns remain about reserve pricing as Thailand gears up for its first spectrum auction in five years.
• European mobile operators argue in a new letter that Europe risks jeopardising its 6G opportunity if it decides not to allocate the upper 6 GHz band for mobile.
• Australian regulator ACMA has put out a proposal to forgo auctions and instead renew 69 spectrum licences that are due to expire between 2028 and 2032.