High spectrum costs are slowing down digital growth in Africa

A recent GSMA Intelligence report highlights a significant financial strain on telecommunications providers across Africa. Over the next decade, more than 200 mobile spectrum licenses will require renewal, representing a total value exceeding $10 billion. Currently, African operators manage an average of 570 MHz of spectrum below 7 GHz, which is 24% less than the global average of 750 MHz. Despite having less capacity, these companies pay a 24% premium for airwaves relative to their revenue. This issue is compounded by a nearly 50% decline in real-term average revenue per user over the last ten years.

These pricing disparities create a major bottleneck for digital infrastructure and network quality. The high cost of radio frequencies limits the ability of operators to expand services or deploy fifth-generation cellular networks, potentially widening the regional digital divide for 170 million people. Because these developments may affect regulatory or compliance obligations, businesses should verify local availability, effective dates, and the specific scope of any new spectrum policies.