TechCabal reports that a new GSMA study, titled Spectrum Policy in Africa, identifies high spectrum costs as a central bottleneck for the continent's digital growth. The analysis indicates that African mobile operators face a significantly higher financial burden for radio frequencies compared to their international counterparts, despite holding less total spectrum. This imbalance is constraining the capital available for network expansion and service quality improvements across the region.
According to the report, the financial weight of spectrum licences represents 0.82% of operator revenue per 100 MHz in Africa, exceeding the 0.66% average found elsewhere. Operators on the continent hold roughly 570 MHz of bandwidth below 7 GHz, a figure 24% lower than the global norm of 750 MHz. The GSMA notes that this cost structure is further complicated by short licence durations; only nine African countries routinely grant licences lasting 20 years or more, whereas longer terms are standard in Europe and North America.
The study highlights a disconnect between network coverage and actual internet adoption. While mobile broadband coverage rose to 92% of the population in 2025, only 28% of Africans used mobile internet on personal devices, a sharp contrast to the 66% rate in other regions. TechCabal notes that "wider coverage has not translated into widespread adoption," pointing to barriers such as device affordability and data prices. Average download speeds in Africa stood at just over 27 Mbps in 2025, significantly lower than the 98 Mbps recorded in other parts of the world.
The report uses Egypt and Tanzania to illustrate the impact of pricing policies. In Egypt, the nominal cost of spectrum rose by more than a factor of five over the last decade, coinciding with a 40% decline in operator investment. Conversely, Tanzania’s 2025 auction of 200 MHz of 5G spectrum included discounted reserve prices and flexible payment terms, which the GSMA argues supported investment without raising the per-unit cost burden excessively.
The GSMA recommends that regulators set spectrum prices based on realistic operator value rather than outdated benchmarks. The study projects that such reforms could extend 4G reach to an extra 50 million users and 5G access to 170 million more by 2035. These changes are estimated to generate over $120 billion in cumulative economic gains across Africa from 2026 to 2035, provided that lower fees are tied to measurable improvements in network quality and affordability.