Spectrum – an Asset or a Liability?
Is mobile spectrum still an asset, or has it become a liability? This paper explores why spectrum acquisition is increasingly defensive and how operators can protect value by optimising what they already hold.
Spectrum is traditionally viewed as a strategic asset, yet evidence from developed mobile markets suggests that acquiring new spectrum often destroys shareholder value rather than creating it. Despite decades of heavy investment in spectrum auctions and network deployment, many mobile operators have consistently delivered returns below their cost of capital, with limited revenue growth and declining shareholder value.
This paper argues that spectrum acquisition has increasingly become a defensive necessity rather than a source of competitive advantage. In highly competitive markets where operators offer similar services using comparable infrastructure, any performance advantage delivered by new spectrum is quickly competed away, with the benefits accruing primarily to customers rather than shareholders. As a result, operators may be worse off after acquiring spectrum than they would have been if no auction had taken place.
The analysis explains why, despite this value destruction, it can still be rational for operators to participate in spectrum awards: failing to acquire spectrum when competitors do so can result in even greater loss of value through higher network costs or degraded service quality. Against this backdrop, the paper concludes that operators should focus on maximising the value of existing spectrum holdings through optimisation, replanning, swaps, and strategic reviews, reducing the need for further value-destructive spectrum acquisitions.
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.