Spanish telecommunications provider Masmovil, the country’s fourth largest network operator, has decided to cancel two-thirds of the digital divide fibre broadband projects it had signed up to because they aren’t economically viable, reports business daily Expansion. The company had committed to 18 projects backed by the government’s Broadband Expansion Programme (PEBA) for 2017 and was due to receive EUR 4.70 million in state aid to roll out fibre networks in underserved rural areas but has rejected EUR 3.03 million of that amount for a total of 11 projects.
Although the operator refrained from giving reasons for its decision, unnamed sources cited in the report said Masmovil had applied for 33 digital divide projects but had been allocated just 18 projects across various regions, meaning the majority were no longer profitable.
The news comes just a week after the Spanish government announced a new project, dubbed "Plan 300x100", to bring fibre-optic broadband access to all localities and 95 percent of the population by 2021 in a total investment of EUR 525 million.
