Spain’s Minister of Economic Affairs and Digital Transformation Nadia Calvino has confirmed that the government intends to extend the duration of spectrum licences from the previous limit of 20 years to 40 years ahead of the imminent auction of frequencies in the 700 MHz band. Speaking at an event organised by El Pais and Deloitte, the minister said the aim is above all to give operators more time to amortise their investment. “It gives us more room for manoeuvre when we proceed with the 700 MHz auction, the most important for 5G,” she said, adding that the regulation would be modified “immediately”.
The government is set to auction frequencies in the 700 MHz band in the next few weeks, having delayed the tender several times due to the Covid-19 pandemic. The eight blocks of 20-year frequencies will have a starting price of EUR 1.17 billion and the ministry said it was looking to raise at least EUR 2 billion, although operators have called on the government to cut the price due to already high tax burdens and with a view to boosting investment.
Spain finally completed its second digital dividend plan to free up the 700 MHz band for 5G services at the end of last year after it was suspended in mid-March due to the first coronavirus lockdown.
