Access to sufficient sub-1 GHz spectrum is one of the most effective tools available to improve rural network coverage, quality and affordability, a new GSMA report shows.

The ‘Spectrum and Rural Connectivity’ report found that, despite significant progress in extending network coverage, rural populations remain 28% less likely to use mobile Internet than their urban counterparts and 30% less likely to regularly engage in online services such as messaging, banking and education.

“Where connectivity is available, network quality, which relies on low bands in rural areas, remains a key barrier to greater use, limiting the ability of rural communities to fully participate in the digital economy,” the report pointed out.

However, governments and regulators can make rapid progress towards closing the rural digital divide by prioritising the allocation of additional low-band spectrum and lowering barriers to voluntary network sharing by mobile operators.

“Governments and regulators have a clear chance to accelerate rural development by prioritising low-band spectrum for mobile and lowering the barriers to voluntary network sharing,” said GSMA head of spectrum Luciana Camargos.

“Our analysis shows that low-band spectrum is the foundation of rural mobile connectivity and making more available – at affordable prices and with long-term regulatory certainty – can dramatically improve rural coverage, boost speeds and reduce deployment costs.

"These improvements translate directly into better access to education, healthcare, financial services and new economic opportunities for rural communities.”

The report demonstrates a strong and measurable link between additional low-band spectrum and improved rural connectivity outcomes, noting that each additional 50 MHz of sub-1 GHz spectrum is associated with a seven percentage-point increase in 4G coverage and an 11 percentage-point increase in 5G coverage in rural areas.

“Increased low-band spectrum availability is also linked to higher rural download speeds – improving performance by up to 8% – and reduced congestion at the cell edge, where rural users are most likely to experience connectivity challenges,” it said.

Lower spectrum costs further strengthen the business case for rural deployment, with the GSMA finding that a 10 percentage-point reduction in the spectrum cost-to-revenue ratio is linked to meaningful improvements in rural networks, enabling operators to invest more in extending coverage and improving quality.

“Combined with policies that lower regulatory and site access costs and support voluntary network sharing, affordable access to low-band spectrum can substantially reduce the cost of rural rollout.”

The report further highlighted the wider economic impact of improved rural mobile networks, including better coverage and quality that enable greater digital participation, support productivity gains in sectors such as agriculture and transport and strengthen local economies through improved access to markets, services and information.

By reducing the rural-urban connectivity gap, policymakers can also amplify network effects that increase the overall value of connectivity for society as a whole.

“With clear evidence that spectrum policy can directly improve rural connectivity outcomes, the GSMA urges policymakers to place low-band spectrum at the centre of national strategies to close the digital divide and drive inclusive economic growth.”

The GSMA calls on governments and regulators to take targeted action to maximise the benefits of spectrum for rural connectivity.

This includes prioritising the assignment of all low-band spectrum allocated to mobile services to expand rural coverage and improve speeds; ensuring affordable spectrum pricing, aligned with economic fundamentals, to support sustainable investment in rural networks; providing long-term regulatory certainty of access to spectrum, matching the long lifespans of rural network assets; and lowering barriers to voluntary network sharing and reducing regulatory costs, including planning and site access, to further improve the economics of rural deployment.