Industry voices warn that rising LTE frequency costs could reshape mobile tariffs
Analysts note that higher charges for using LTE frequency bands are likely to press up the prices of all bundled mobile plans. The shifts in frequency costs stem from a transition from newer, more efficient spectrum management to traditional approaches, according to telecom sector sources in discussions with equipment suppliers.
It is emphasized that LTE has been the dominant Internet technology since 2019, shaping how networks are planned and priced. The expectation is that future price adjustments will reflect the real cost of spectrum use, even as operators balance other ongoing pressures.
Industry leaders acknowledge that rising spectrum costs are not welcome, especially given ongoing challenges such as equipment shortages and a reduced pipeline of base station manufacturers. Stakeholders urge coordinated action with the Ministry of Digital Development to resolve these issues within a near-term timeframe, targeting late this year to early next year.
Without a coordinated response, operators may pass increased costs to customers. Telecom Daily reports that tariff prices have already been trending upward, with a yearly rise in the low to mid single digits. If spectrum costs continue to climb, the trajectory for consumer plans could accelerate, particularly since a large share of tariffs are bundled packages.
Analysts note that two potential scenarios exist for tariff impact. Some estimates suggest that the cost of using LTE bands could rise by as much as tenfold, while other frequencies might see roughly a twofold increase. However, a subset of experts believes these cost pressures may not directly translate into higher mobile data tariffs for end users, given potential market and competitive dynamics.
Earlier reports highlighted ministerial plans to require operators to justify any tariff increases. The proposal envisions operators submitting detailed justification to the competent regulatory body, with accompanying documentation to Roskomnadzor for review. These regulatory steps aim to enhance transparency and ensure that price changes reflect underlying costs rather than profitability alone.
Throughout the telecom sector, the dialogue continues among operators, regulators, and industry analysts about how best to manage spectrum costs without compromising service quality. Observers stress the need for clear, data-driven collaboration to stabilize prices while maintaining investment in network modernization. This ongoing conversation is shaping expectations for pricing, investment, and policy in the coming months. Attribution: Telecom Daily reporting and industry analysis from sector observers.