Governments seeking to bridge the widening digital gap between urban and rural communities may need to rethink spectrum policy rather than focus solely on expanding network infrastructure, according to a new report released by the GSMA, the global body representing mobile network operators.
The report, titled Spectrum and Rural Connectivity, argues that access to sufficient low-band spectrum has emerged as one of the most decisive factors shaping the availability, quality and affordability of mobile internet services in underserved areas.
While mobile coverage has expanded significantly in recent years, the GSMA noted that meaningful digital participation remains uneven. Rural populations are still 28 percent less likely to use mobile internet compared with urban residents and about 30 percent less likely to regularly access online services such as messaging platforms, digital banking and remote learning tools.
The findings indicate that the challenge facing policymakers is shifting from basic network availability to performance and usability, particularly in regions where weak signal quality limits consistent connectivity despite nominal coverage.
Low-band spectrum at the centre of rural connectivity
According to analysis conducted by GSMA Intelligence, low-band spectrum frequencies below 1 GHz play a critical role in rural network deployment due to their ability to travel longer distances and penetrate buildings more effectively than higher-frequency bands.
These characteristics allow operators to cover wider geographic areas using fewer base stations, significantly lowering deployment costs in sparsely populated locations. Rural users already rely heavily on such frequencies, spending more than twice as much time connected to low-band networks compared with urban users across both 4G and 5G technologies.
The report presents measurable evidence linking spectrum availability to improved connectivity outcomes. Each additional 50 MHz of sub-1 GHz spectrum allocated to mobile services is associated with a seven-percentage-point increase in rural 4G coverage and an 11-percentage-point improvement in rural 5G reach. Increased availability is also tied to faster download speeds and reduced congestion at the edges of network coverage, where rural subscribers typically experience the weakest performance.
Economics of rural rollout
Beyond technical considerations, the GSMA emphasised the economic constraints shaping operators’ investment decisions. High spectrum licence costs, the report said, can discourage expansion into rural markets where revenue potential is lower and infrastructure deployment is more expensive.
Analysis within the report indicates that reducing the spectrum cost-to-revenue ratio by 10 percentage points enables operators to channel more resources into extending coverage and improving service quality outside major cities.
The organisation also highlighted voluntary network sharing as a practical mechanism to improve rural deployment economics. Allowing operators to share infrastructure such as towers and access networks can lower capital expenditure and accelerate rollout timelines, particularly in remote areas where standalone investments may not be commercially viable.
Luciana Camargos, head of spectrum at the GSMA, said policymakers have an opportunity to accelerate inclusive digital development by prioritising affordable access to low-band spectrum and reducing regulatory barriers that limit collaboration among operators.
Connectivity as an economic driver
The report considers rural connectivity as a broader economic issue rather than a purely telecommunications concern. Improved network quality, it noted, enables stronger participation in digital services, enhances productivity in sectors such as agriculture and transport, and improves access to markets, healthcare and financial systems.
Closing the rural connectivity gap can also generate wider network effects that increase the overall economic value of digital infrastructure, as more users and businesses participate in online ecosystems.
Policy recommendations
To accelerate progress, the GSMA urged governments and regulators to prioritise the assignment of available low-band spectrum to mobile services, align spectrum pricing with economic realities, provide long-term regulatory certainty and lower administrative barriers related to planning approvals and site access.
The organisation argued that spectrum policy now sits at the heart of national digital inclusion strategies, with regulatory decisions capable of directly influencing coverage expansion, service quality and affordability outcomes.
As countries push forward with digital transformation agendas, the report suggests that closing the rural digital divide may depend less on technological innovation and more on how effectively policymakers manage access to the invisible infrastructure powering mobile connectivity.
