Global 5G Spectrum Pricing Shifts: Mid-Band Costs Drop, mmWave Gains Demand

The evolution of mobile communications is deeply intertwined with the strategic deployment of 5G technologies, where the determinants of low-band, mid-band, and mmWave spectrums are shaping investment strategies and regulatory policies globally. With the mobile industry progressing towards universal connectivity and advancing toward 6G, the significance of low-band spectrum remains evident, especially as it forms the backbone for internet of things (IoT) applications, emergency services, and inclusive digital infrastructure. Mid-band spectrum retains its critical role in carrying the bulk of 5G traffic and promises to continue its essential service into the forthcoming 6G era, where millimeter wave (mmWave) is set to serve as a transitional bridge.

A recent analysis from the Global Mobile Suppliers Association (GSA) presents a detailed snapshot of the global 5G spectrum landscape, addressing operator investments and regulatory movements across these frequency bands. Mid-band spectrum, particularly C-band, has experienced a notable reduction in pricing post-2023, reflecting an increased availability, market maturation, and a waning urgency from operators who hold substantial allocations. Conversely, low-band spectrum prices, which historically have been higher, are witnessing a downward trend. This reduction is attributed to regulatory efforts aimed at broader digital inclusion, focusing on rural deployment and affordability.

The dynamics of mmWave spectrum pricing indicate that despite its lower average global price compared to mid-band, its value is increasing in application areas requiring ultra-high capacity and low latency, such as fixed wireless access (FWA), private industrial networks, and high-density venues. Recent deployments in Brazil and forthcoming auctions in the UK, India, and Japan are indicative of a second wave of mmWave adoption, supported by a maturing device ecosystem with over 150 commercially available mmWave-capable devices globally.

The strategic importance of shutting down legacy 2G and 3G networks cannot be overstated. This transition is pivotal in unlocking low-band and mid-band spectrums crucial for the expansion of 4G and 5G services. Joe Barrett, GSA president, emphasizes that while mmWave adoption globally is in its nascent stages, there is a stable increase in investment, especially in regions where spectrum policy, infrastructure readiness, and urban density are favorably aligned.

Looking ahead to key events like WRC-27 and WRC-31, discussions on global harmonization and smart spectrum sharing, potentially driven by AI, will be vital to developing a flexible, high-performance wireless future. The GSA’s Spectrum Group aims to continue supporting international, regional, and national policymakers with studies and technical analyses to ensure timely spectrum availability for mobile network operators.

The GAMBoD database, developed by the GSA, serves as an instrumental tool for tracking LTE and 5G device attributes, including category type, chipset, and supported spectrum bands. It provides critical insights into global public and private mobile network data, detailing country-specific operations, operator initiatives, vertical integrations, and network technologies. Furthermore, it offers information on chipsets from various silicon vendors and encompasses technologies and features supported alongside global spectrum assignments.

In summary, the incremental growth and economic potential linked to mobile communications are underscored by strategic spectrum management and investment. Continuous advancements transitioning from 5G to future 6G innovations promise significant socio-economic benefits through global mobile connectivity, shaping a wireless future built on cooperation and cutting-edge technology.