A recent Analysys Mason report has examined the expiry of legacy spectrum licences and the resulting strategic and regulatory challenges facing mobile network operators (MNOs).
Telecom regulators aim to balance competitive markets, service quality, and investment needs. MNOs must secure existing spectrum to maintain service continuity while reassessing holdings to align with evolving technologies like 4G and 5G.
Janette Stewart and Gentiana Shiko at Analysys Mason say licence renewals present both opportunities and challenges. While they allow operators to renegotiate terms and plan future investments, they also create uncertainty. New approaches — such as longer licence durations, cashless renewals tied to investment commitments, and flexible spectrum use — are emerging to address the need for greater network quality and wider coverage.
The report highlights that network investment remains uneven, with stronger commercial incentives in urban areas and a weaker case in rural regions, despite policy goals to bridge the digital divide. Spectrum pricing and associated annual fees also influence investment levels, sparking debate on how best to structure renewal terms. Regulators are encouraged to create frameworks that promote innovation, ensure service continuity, and support efficient use of spectrum in a rapidly evolving telecom environment.
10 points for MNOs
#1 Secure Critical Spectrum through Proactive Licence Renewal
Operators must prioritize retaining existing spectrum to ensure continuity of service and avoid customer churn, especially with expiring pre-4G licences.
#2 Engage Early with Regulators on Licence Terms
Participate in shaping licence renewal frameworks that support long-term planning, flexible spectrum use, and favorable investment conditions, including longer licence durations.
#3 Link Investment Commitments to Spectrum Pricing
Advocate for cashless or low-cost renewals in exchange for binding commitments on network investment and rural/underserved area coverage.
#4 Tailor Investment Strategies by Region
Focus capex in high-density areas for ROI while exploring public-private partnerships or subsidies to improve rural connectivity and bridge the digital divide.
#5 Use Licence Renewal as a Catalyst for Network Upgrade Planning
Reassess spectrum efficiency and align existing holdings with current and future technology (e.g., refarming legacy 2G/3G bands for 4G/5G).
#6 Enhance Network Quality to Meet Regulatory and User Expectations
Strengthen service quality KPIs to meet evolving policy goals tied to licence conditions, especially in markets where network quality is lacking.
#7 Advocate for Flexible Spectrum Use Policies
Push for technology-neutral licences that allow dynamic use of spectrum across different generations (e.g., 4G/5G) to support future innovation.
#8 Optimize Capex Allocation via Licence Duration Forecasting
Long-term spectrum rights (e.g., 20-40 years) support stable investment planning and should be pursued where possible to reduce risk and improve ROI.
#9 Align Spectrum Strategy with Equipment and Device Ecosystem
Ensure spectrum use harmonizes with commercially available network infrastructure and handset support to reduce deployment costs and delays.
#10 Monitor Evolving Global Regulatory Trends
Track spectrum licensing models (e.g., auctions vs renewals, depreciating licences, spectrum sharing) across markets to inform competitive and adaptive strategies.
These strategies help telecom operators balance regulatory demands, capital efficiency, and service quality while securing their position in an increasingly competitive and high-expectation market.
Baburajan Kizhakedath
