Regulatory Approaches to Providing Deep Rural Coverage
In a number of markets, governments are working together with the regulator and mobile operators to address coverage “black spots” and deep rural coverage. This new paper explores some of the approaches being adopted.
Coleago’s comprehensive analysis in “Maximising Coverage through Spectrum Awards” examines the economics of coverage expansion in the mobile industry. The paper delineates various levels of coverage obligations and their economic viability for operators, shedding light on the challenges and solutions pertaining to deeply rural areas.
Introduction
The paper identifies five coverage levels, delineating the point where extending coverage becomes uneconomical for operators. Notably, levels beyond commercial viability necessitate regulatory intervention or subsidies for expansion, compelling collaboration between regulators and mobile industry stakeholders.
Coverage Levels and Economics
Level 1: Commercially driven expansion where operators extend coverage until marginal revenue equals incremental costs.
Level 2: Beyond commercial coverage, viable with regulatory intervention.
Level 3: Commercially viable but suitable only for a single operator acting as a natural monopolist.
Level 4: Unviable without subsidy, typically involving deeply rural areas or the last percentile of population.
Level 5: Remote areas where terrestrial mobile networks are not the economical solution, necessitating alternatives like satellite or specialised projects (e.g., Alphabet’s Project Loon).
Regulatory Approaches in Various Markets
France: Agreement through licence renewal for a €3 billion industry-funded programme to cover underserved areas.
United Kingdom: Creation of a Shared Rural Network (SRN) through co-funding by government and industry to address rural coverage gaps.
Germany: Coordinated construction of radio sites by major operators, complemented by government funding to eliminate white spots.
United States: A US$9 billion plan focused on rural areas and agricultural support, intertwined with T-Mobile/Sprint merger conditions.
Australia, Norway, Kazakhstan, Zimbabwe, Mozambique, Kenya: Diverse strategies involving public funding, shared networks, satellite technologies, and partnerships to extend rural coverage.
Considerations for Regulators
Achieving deep rural coverage necessitates collaboration and funding. Furthermore, leveraging licence renewals or spectrum awards provides opportunities for stakeholders to collaborate. Reverse subsidy auctions can efficiently ensure coverage, while joint ventures mitigate competition concerns. To expand into areas unsuitable for mobile networks, regulators must explore alternatives like satellite or specialised projects, necessitating broader stakeholder coordination, including aviation authorities.
Conclusion
The paper underscores the imperative for collaboration between regulators and the mobile industry to extend coverage, especially in deeply rural areas, and emphasises innovative funding mechanisms, joint ventures, and alternative technologies to bridge coverage gaps effectively. Moreover, it highlights the pivotal role of regulators in coordinating diverse stakeholders to achieve ubiquitous connectivity beyond traditional mobile networks.
Other insights
Satellite Connectivity and the Operator Challenge
The rapid expansion of low earth orbit satellite constellations and the emergence of direct-to-device connectivity are creating one of the most significant strategic challenges the mobile industry has faced in decades. Satellite operators are evolving from niche providers serving remote areas into potentially powerful competitors capable of delivering broadband and mobile connectivity directly to consumer devices independently of terrestrial infrastructure. Coleago examines the commercial, strategic and regulatory implications of this shift from the perspective of mobile network operators.
Satellite Services and Regulatory Challenges
The rapid emergence of Low Earth Orbit (LEO) satellite constellations and direct-to-device (D2D) technologies is reshaping the communications landscape. Satellite systems are evolving from niche, complementary solutions into mainstream providers of broadband and mobile connectivity, capable of connecting directly to smartphones without intermediary infrastructure. Convergence between satellite and terrestrial mobile networks raises profound regulatory, economic and competitive questions for policymakers worldwide.
Insights from the Pakistan 2026 Multi-Band Spectrum Auction
Pakistan’s 2026 spectrum auction released unprecedented volumes of spectrum. This Insight provides an insider perspective on the multi-band award, drawing on Coleago’s direct involvement in supporting a successful bidder, and explores the auction design, bidding dynamics and key lessons for regulators.
Spectrum Renewal: A Framework for Spectrum Valuation and Pricing
Mobile connectivity supports economic development, social participation and digital innovation across every modern economy. Yet the performance and resilience of this ecosystem depend on a scarce national asset – radio spectrum. As many countries approach key licence renewal milestones for the original IMT 4G spectrum bands that were issued 10 to 20 years ago, the question of how to value spectrum and how to determine an appropriate renewal price takes on increasing importance in the case where the spectrum is being renewed via an administrative or hybrid auction process.
Leveraging Terrestrial Mobile Spectrum for D2D capacity
This article was first published in the GTPRN 2026 Newsletter, February 2026. It provides a fresh perspective on the merits of leveraging terrestrial mobile spectrum for D2D capacity. Terrestrial mobile spectrum could be used to substantially increase D2D capacity precisely where it is needed the most given that in 90% of the globe’s surface there is no shortage of spectrum.
Navigating Spectrum Licence Renewal: Lessons from Australia
Australia’s spectrum licence renewal process shows how operators can align regulatory engagement with commercial strategy. This case study highlights Coleago’s role in helping Optus secure optimal outcomes, from evidence-based submissions to spectrum planning for 5G and 6G.