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Spain to award additional 5G spectrum next month

The government of Spain aims to award a total of 12 national concessions in the 25.10-27.50 GHz band, and 38 regional concessions in the 24.70-25.10 GHz band

The Spanish government announced details of a spectrum auction next month, through which it expects to award local telcos with additional 5G spectrum.

In a release, the Ministry of Economic Affairs and Digital Transformation, through the Secretary of State for Telecommunications and Digital Infrastructures, has published the final bidding conditions for the 26 GHz band.

The government noted that this upcoming spectrum auction completes the process of making all the preferred bands available to telecommunications operators to deploy 5G networks and services.

The final bidding conditions for the 26 GHz band are the result of an “intense” consultation process with the sector, which began in December 2021, the government said.

The government aims to award a total of 12 national concessions in the 25.10-27.50 GHz band, and 38 regional concessions in the 24.70-25.10 GHz band.

The starting price of each national concession has been set at 4 million euros ($4 million). In the case of regional concessions, the initial price is proportional to the population of the autonomous community or city under consideration. The concessions will have a duration of 20 years, extendable only once for another 20 years.

The concessions are in accordance with the technical specifications established by the European Commission, in relation to the harmonization of the 24.25-27.5 GHz frequency band for terrestrial systems capable of providing wireless broadband electronic communications services in the Union.

The government noted that those operators interested in participating in the auction can submit their applications until December 7, 2022. Afterwards, a period of evaluation of the applications will begin. The government said that the bidding process is expected to start around December 22. 

In July 2021, the Spanish government raised a total of 1.1 billion euros in the 700 MHz spectrum auction, with local operators Telefónica, Vodafone and Orange securing these key frequencies to expand 5G services.

The Spanish Ministry of Economic Affairs had said that each 700 MHz license will have a duration of 20 years, rising to a maximum of 40 years.

Spanish operators have already launched 5G services through spectrum in the 3.5 GHz, which was awarded in 2018.

In February 2021, the Spanish Ministry of Economic Affairs and Digital Transformation had awarded the remaining two 10-megahertz blocks of spectrum in the 3.5 GHz band to local carriers Orange and Telefonica.

Orange and Telefónica were the only two operators that took part in this last auction, each paying the starting price of 21 million euros for a 10-megahertz block.

In July, Spanish telecom operator Telefonica said its 5G network covered 82% of the Spanish population.

The operator said its 5G network provides coverage to 38 million people in 1,431 towns and cities across Spain.

By the end of 2022, the telco aims to reach 1,400 municipalities in Spain with its 5G service using this spectrum band, with the goal of reaching 2,400 by the end of 2023.

Rival operator Orange Spain ended September with a total of 1.47 million subscribers in the 5G segment. Orange already deployed its 5G services in 1,529 towns and cities in 52 provinces across Spain, surpassing its initial target for the full year.

According to Orange, its 5G network infrastructure reached 68.7% of the Spanish population as of the end of the third quarter.

Meanwhile, Masmovil is currently offering 5G service in almost 1,400 towns and cities in 51 provinces across Spain for the customers of its Yoigo brand. According to the operator, 70% of the country’s population is already covered with its 5G network infrastructure. Masmovil also said that it had reached 505 new towns and cities in its latest 5G expansion.

Vodafone is also offering 5G services in the main cities across the country.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.