The Spanish Ministry of Economic Affairs and Digital Transformation has completed its delayed auction of 5G-compatible frequencies in the 700 MHz band, raising a total of EUR 1.01 billion, around EUR 15 million above the starting price. In separate statements, the three operators vying for spectrum – Telefonica, Vodafone and Orange – confirmed they paid the reserve prices for the 2x10 MHz blocks, allowing them to launch 5G SA (standalone) services in the future and provide better coverage in indoor and larger outdoor areas.
Vodafone said it agreed to pay EUR 350 million for its concession in a single instalment following the conclusion of the auction process. A licensing fee of EUR 15.5 million will also be payable each year. It confirmed that the spectrum acquired has initial holding rights until 2041, with an automatic renewal with no additional fees for a further 20 years (until 2061), subject to meeting certain licence conditions, such as activating 5G services in 450 localities with populations above 50,000 by the end of June 2025, as well as covering the country’s largest airports, train stations and motorways.
Orange likewise paid EUR 350 million for its 2x10 MHz block, becoming the operator with the largest amount of 5G-compatible spectrum in Spain thanks to its existing 110 MHz concession in the 3.5 GHz band, for which it paid EUR 173 million. The company has invested a total of EUR 523 million in the acquisition of these frequencies and expects to offer 5G coverage to more than 50 percent of the Spanish population before the end of 2021.
Movistar (Telefonica) ended up acquiring the cheapest 2x10 MHz block for EUR 310 million due to faster deployment obligations. The operator has committed to bringing 5G before the June 2025 deadline to all localities with more than 20,000 inhabitants as well as airports, ports, AVE train stations, motorways and multi-lane roads.
Following the 18-month delay, the tender was finally resolved in record time due to the absence of competition from rival operators such Digi Spain and Masmovil, with the latter deciding not to take part after the authorities failed to meet its various demands. Spain is due to hold the third and last of its auctions of 5G-compatible spectrum, this time in the 26 GHz band, before the end of this year.
