Spain’s Ministry of Economic Affairs and Digital Transformation said the country’s remaining 20 MHz of spectrum in the 3.5 GHz band has been awarded to Telefonica and Orange, the only two bidders in the tender. Each operator was awarded one 10 MHz block valid until 2038 for EUR 21 million, meaning the state met its EUR 42 million valuation.
As a result, Orange and Telefonica have a total of 110 MHz and 100 MHz of spectrum respectively in the 3.5 GHz band, most of which they acquired back in 2018, while Spain’s two other MNOs – Vodafone and Masmovil – have 90 MHz and 80 MHz. The ministry will now be reorganising the band so that all operators have contiguous frequency blocks, allowing for more efficient use of radio spectrum for the rollout of 5G, and preparing to auction frequencies in the 700 MHz band before the end of March.
The latter is key for the rollout of SA (standalone) 5G when the technology becomes fully available after standardisation. 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 so that the necessary investment in the technology can be undertaken.
Vodafone was the first Spanish operator to switch on its 5G signal on the 3.5 GHz band in an initial 15 cities back in June 2019, followed in September 2020 by Telefonica, Orange and Masmovil.
