The government confirmed Spain’s four mobile carrier are participating in the spectrum auction
Spain’s 5G spectrum auction has already raised more than EUR 402 million ($469 million) after four days of bidding, according to the latest update from the country’s economic ministry.
The Spanish government is auctioning spectrum in the 3.6 GHz to 3.8 GHz range, which will be key for the launch of commercial 5G services in the European country. The government had set a reserve price of EUR 100 million for the 5G spectrum.
Spain’s four mobile carriers, Movistar, Orange, Vodafone and Masmovil, are all participating in the auction. These carriers are bidding for a total of 200 megahertz of spectrum, which will be sold under 20-year licenses for lots of 5 megahertz at a minimum price of EUR 2.5 million each.
The maximum limit of frequencies available to a single operator in this band was set at 120 megahertz. The highest bids for the 5 megahertz blocks on sale ranged from EUR 8.88-12.01 million, the ministry said.
Orange currently own 40 megahertz of 3.5 GHz spectrum that it purchased in 2016. Due to this, the carrier will be restricted to an additional 80 megahertz at the current auction.
The winning bids are expected to be revealed when the auction closes next week.
Last week, Masmovil said it agreed to pay EUR 30 million to acquire 40 megahertz of spectrum in the 3.5GHz band from Spanish satellite broadband operator Eurona, which it will use to provide its future 5G services. The company said it owns 80 megahertz of spectrum in the 3.5GHz band following this recent acquisition.
Spanish telecommunications giant Telefonica, which operates in the mobile segment through its Movistar unit, recently said it is unlikely to announce the commercial launch of 5G services prior to 2020 since any equipment used would have to be changed and the operator would be unable to negotiate satisfactory prices.
“If someone starts deploying 5G next year, they will have to do so via pre-commercial technology that will surely need to be updated at a software level and will also probably to change equipment later level,” Spanish press reported the company’s network and IT infrastructure strategy director Javier Gutierrez as saying.
“We will be able to know what equipment we want to buy towards a commercial deployment in 2020. We do not see a commercial deployment before 2020,” he stressed.
Belgium to award 5G spectrum to attract a fourth mobile carrier in late 2019
In related news, the Belgian government is planning an auction of mobile frequencies for late 2019, with the aim of encourage the entry of a fourth mobile carrier to compete with Proximus, Orange Belgium and Telenet’s BASE.
The government expects to award frequencies in the the 900 MHz, 1800 MHz and 2100 MHz range, as well as in the 700 MHz, 1400 MHz and 3600 MHz bands.
The frequencies are expected to be awarded for 20 years.
“The conditions are such that, in case there is interest, a fourth operator can enter the market on good terms, which allow for a level playing field with existing operators,” the Belgian ministry for telecoms and the digital agenda said in a statement.
“The possible entry of a fourth operator will allow for lower prices, more innovation and a faster roll out of 5G,” the ministry said.
Belgium’s largest operator Proximus opposed to the government’s plans, arguing that the entry of a new mobile carrier will affect the quality of the network and the profitability of the sector.
