Telecom
High Spectrum Prices Inimical to Social Welfare in Developing Countries – Study
Better spectrum pricing policies are needed in developing countries to improve the economic and social welfare of the billions of people that remain unconnected to mobile broadband services, according to a new report, ‘Spectrum Pricing in Developing Countries’, released by the GSMA yesterday at the Mobile 360 – Africa conference in Kigali.
The study reveals that spectrum prices in developing countries are, on average, more than three times higher than in developed countries, when income is taken into account. This high spectrum pricing is a major roadblock to increasing mobile penetration.
Authored by GSMA Intelligence, the study also found that governments are playing an active role in increasing spectrum prices to maximise state revenues from spectrum licensing.
High spectrum prices are linked to countries with high levels of sovereign debt, and alarmingly average reserve prices in spectrum auctions are more than five times higher in developing countries than in developed, once income is accounted for.
The report also identifies a link between high spectrum prices and poorer coverage, as well as more expensive and lower quality mobile broadband services, all of which hinder the take-up of services by consumers.
“Connecting everyone becomes impossible without better policy decisions on spectrum,” said Brett Tarnutzer, Head of Spectrum, GSMA. “For far too long, the success of spectrum auctions has been judged on how much revenue can be raised rather than the economic and social benefits of connecting people.
Spectrum policies that inflate prices and focus on short-term gains are incompatible with our shared goals of delivering better and more affordable mobile broadband services.
These pricing policies will only limit the growth of the digital economy and make it harder to eradicate poverty, deliver better healthcare and education, and achieve financial inclusion and gender equality.”
The GSMA study assessed over 1,000 spectrum assignments across 102 countries (including 60 developing and 42 developed countries) from 2010 through 2017, making it the largest-ever analysis into spectrum pricing in developing countries, as well as the drivers and their potential impacts of spectrum pricing on consumers.
Among the countries included in the analysis are Algeria, Bangladesh, Brazil, Colombia, Egypt, Ghana, India, Jordan, Mexico, Myanmar and Thailand – all markets where spectrum licensing is a priority.
Setting high final prices administratively or setting high auction starting prices (e.g. reserve prices), artificially limiting the amount of licensed spectrum available, not sharing a clear spectrum roadmap, and setting poor auction rules are some of the policy decisions highlighted in the report that are driving high spectrum prices in developing countries.
Mobile Connectivity Index
In related news, GSMA Intelligence today launched its latest Mobile Connectivity Index, which measures the performance of 163 countries (representing 99 per cent of the world’s population) against key enablers of mobile internet adoption.
The Index highlights recent progress made on widening access to the mobile internet and explores key roadblocks to adoption, including spectrum policy.
At the end of 2017, 3.3 billion people (or 44 per cent of the global population) were connected to the mobile internet, representing an increase of almost 300 million compared to the previous year.
That still leaves more than 4 billion people offline and unable to realise the social and economic benefits that the mobile internet enables. The majority of people that remain unconnected – 3.9 billion – live in developing countries.
Mobile broadband networks still do not cover 1 billion people globally, and approximately 3 billion people who live within the footprint of a network are not currently accessing mobile internet services.
In low-income countries, around two thirds of rural populations are not covered by 3G networks.
The Mobile Connectivity Index highlights the importance of factors such as the affordability and quality of mobile broadband services, and network investment in connecting people, both of which can be impacted by high spectrum prices.
“If mobile operators don’t get affordable and predictable access to spectrum, it will be consumers who will suffer the most.
“Developing countries have the opportunity to catch up with the developed on mobile adoption; however the investment case in some of these markets is being put at risk.
“Operators cannot keep paying significantly more for spectrum when consumer incomes and expected profits are much lower in these markets. This is making network investment challenging at a time when policies should encourage the development of the mobile sector to maximise the benefits it can bring to everyone,” said Pau Castells, Director of Economic Analysis at GSMA Intelligence.
Airtel Nigeria, telecom service provider, has announced that its AI-powered Spam Alert Service issued over 9.6 million spam alerts between March 13 and May 20, 2025.
As part of its ongoing commitment to protecting customers from unwanted and potentially fraudulent communications, Airtel designed the AI Spam Alert service to analyze traffic patterns and detect anomalies.
In the period since launch the AI pinpointed a total of 9,667,008 SMS as potential spam messages in the two months after its launch.
Of these, the system identified 528,080 on-net (Airtel-to-Airtel) and 9,138,928 off-net (from other networks) numbers as suspected spam messages, demonstrating the scale of the threat and Airtel’s advanced processing capability.
Airtel Nigeria is a subsidiary of Airtel Africa.
Commenting on this development, Dinesh Balsingh, CEO, Airtel Nigeria, restated Airtel`s commitment to protecting its customers.
“This milestone demonstrates the strength of our AI-driven infrastructure in combating the growing menace of spam and scam calls. At Airtel Nigeria, we are focused on connecting Nigerians and ensuring their safety and confidence while using our network.
“We understand that trust is the cornerstone of digital communication. That’s why we’ve invested heavily in intelligent systems that not only detect potential threats but also learn and evolve with data. As threats become more sophisticated, so will our solutions. As a company, we remain focused on leading the industry in innovation and customer satisfaction, ensuring that every Nigerian can enjoy a safer and smarter digital experience,” Mr. Balsingh said.
The Spam Alert Service is part of Airtel Nigeria’s broader strategy to integrate artificial intelligence into its core offerings to deliver smarter and safer experiences for its customers across the country.
Recall that the Spam Alert Service was launched on March 13, 2025. A groundbreaking and free solution from Airtel, it notifies users in real-time of suspected spam SMS messages by analyzing over 250 parameters.
The Airtel AI Spam Alert Service is available to all Airtel subscribers on smartphones and feature phones.
Vitel Wireless Limited, pioneer mobile virtual network operator (MVNO) in Nigeria has made another history by announcing the successful completion of interconnectivity with all major Mobile Network Operators (MNOs) in Nigeria.
Kenneth Nwabueze, Chairman and CEO of Vitel Wireless
Recall that Vitel Wireless, became the first Mobile Virtual Network Operator to receive a dedicated number series (0712) from the Nigerian Communications Commission (NCC).
This breakthrough enables Vitel Wireless subscribers to make and receive calls with users on MTN Nigeria, Airtel Nigeria, Globacom (Glo), and 9mobile Nigeria.
It also marks the first time an MVNO in the country has successfully interconnected with all the major MNOs, setting a new precedent for Nigeria’s telecom sector.
Following the NCC’s licensing of 46 MVNOs, Vitel Wireless continues to lead the way in establishing a dynamic MVNO sector in Nigeria—Africa’s largest market and most populous nation.
The company has already achieved several historic firsts: the first MVNO issued a numbering plan and national and international routing codes, the first to launch a location awareness network in Africa, and the first to unveil a strategic nationwide rollout plan.
“We are gathering momentum for our big launch,” said Kenneth Emeka Nwabueze, chairman and CEO of Vitel Wireless.
“We are proud to be showing what’s possible for MVNOs, while also creating a path for others to follow. By leveraging our years of experience in Nigeria’s telecom industry, we are opening up new possibilities where there used to be none.”
Interconnectivity was achieved through a combination of direct fiber connections with some MNOs and indirect routing via third-party providers.
This milestone was the result of a collaborative effort involving engineers from Vitel Wireless, Wireless Technology Labs (WTL), and Interconnect Clearinghouse Nigeria (ICN), working closely with engineers from MTN, Airtel, Glo, and 9mobile.
“We wish to thank the regulatory agency, the Nigerian Communications Commission, for their timely interventions and guidance, which were instrumental in achieving this interconnectivity and bringing the formal launch of the Vitel Wireless nationwide network one step closer to reality,” said Nwabueze.
The company entered a nationwide pilot phase in May 2025, with plans for a full rollout in July 2025, aiming to deliver next-generation mobile services to millions across Nigeria.
Layer3, One of Nigeria’s foremost ICT solutions providers, has once again solidified its place as a trailblazer in Africa’s technology landscape, emerging as the Enterprise Solutions Provider of the Year and Leadership Award in Cloud Services at the prestigious African Beacon of ICT Leadership and Awards held on May 24, 2025, at the Four Points by Sheraton, Lagos.
This year’s event brought together leading tech innovators, policymakers, and thought leaders to recognize organizations making extraordinary contributions to Africa’s digital transformation.
Among the many luminaries in attendance, Layer3 stood out for its 19+ years of consistent innovation, technical excellence, and client-centered service delivery.
Speaking at the event, the organizers praised Layer3’s pioneering work in delivering robust enterprise solutions across sectors, as well as its bold leadership in advancing cloud infrastructure and services across Nigeria and beyond.
“These awards are more than recognitions, they are a reminder of the fulfilment to our mission to deliver peace of mind to our customers,” said David Ita, the Head of Strategy and Business Development of Layer3.
“They speak to the impact we’ve made and the promise we hold for the future of the cloud and enterprise technology business in Africa. We dedicate this honor to our clients, partners, and the hardworking Layer3 team who continue to redefine excellence every day.”
Since its founding, Layer3 has championed a future-forward approach to ICT services offering cutting-edge solutions in enterprise networking, cybersecurity, broadband, cloud computing, managed services, and IT advisory. The company’s Layer3Cloud platform and managed service offerings continue to power the digital ambitions of Nigeria’s leading businesses.
These accolades underscore Layer3’s unwavering commitment to driving transformation and supporting digital economies through smart, secure, and scalable technology.
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