Telcos find new lifeline in spectrum slicing

As revenues shrink and competition intensifies, spectrum-as-a-service offers telcos a shared model to unlock growth while empowering enterprises.

- PRATIMA HARIGUNANI

It sounds like an April Fool's prank when you first hear the words Spectrum-as-a-Service. However, it is not just another phrase in telecom jargon—it goes several steps beyond. At first glance, it even feels like an oxymoron, something telcos would never entertain. After all, there is nothing more elusive, regulated, scarce, and competitively sensitive than spectrum for telcos. Over the decades, auctions, litigations, and policy debates have revolved around this single word. So, how could anyone think of slicing it?

Yet the question has never been more urgent. Telcos are struggling with both internal inefficiencies and external shocks—falling ARPUs, vanishing voice revenues, hyperscaler competition, and customer fatigue. With margins under pressure and monetisation pipelines drying up, the search for a new growth model is inevitable. Could slicing the spectrum offer that lifeline?

Is it not like attempting to cut through a steel truck— immense, expensive, and difficult to move? Yet, what if this seemingly absurd thought were possible? Imagine a company that owns a heavy vehicle and decides to rent out each component—one drives it, others share the seats, and someone uses its cargo hold. Suddenly, a static capital asset becomes a revenue-generating service.

Now, this metaphorical “what if” is becoming real. Spectrum can indeed be sliced and offered as a service. After cars, homes, software, and even rockets, spectrum has entered the as-a-Service age too. The question is— how does it work, and what makes it viable?

UNDERSTANDING THE MODEL AND HOW IT WORKS

At its core, spectrum-as-a-service is a commercial and technical model where Mobile Network Operators (MNOs) dynamically allocate portions of their licensed spectrum to enterprises, vertical industries, and service providers on a usage or subscription basis.