HomeInternet telecomSpain nets €1 billion in lacklustre 700 MHz sale

Spain nets €1 billion in lacklustre 700 MHz sale


Spain has lastly auctioned spectrum within the 700 MHz band, however the bidding was mediocre at greatest, with the ultimate whole barely exceeding the reserve worth.

The sale generates 1,010 million euros, and the three giant operators, Telefónica, Vodafone and Orange, take all of the frequencies residence, however with out mentioning the challenger Masmovil. All out there paired 700 MHz frequencies have been exhausted, however 15 MHz of unpaired spectrum was left unsold.

Solely Telefónica paid greater than the reserve worth for its spectrum, securing a 2 × 10 MHz block for simply over 310 million euros, some 40 million euros above the bottom worth. Those that spent probably the most have been Vodafone, which acquired a paired 10 MHz block for 350 million euros, and Orange with two 5 MHz blocks on the similar worth.

However truthfully, speaking about large winners and large spenders is considerably redundant on this scenario; This was not an public sale of hectic exercise.

Nevertheless, that didn’t cease the telecommunications firms themselves from speaking concerning the end result.

Orange described herself as having “consolidated [its position] because the operator with the biggest quantity of spectrum within the two precedence bands for the deployment of 5G expertise ”, referring to its present tenure of 110 MHz within the 3.5 GHz band (3.4 GHz – 3.8 GHz) .

In a really comparable announcement, Telefónica opted for “consolidat[ing] its management in connectivity by combining the promotion of 5G protection with its in depth fiber community in Spain ”. It additionally referenced its present holdings in different bands, together with 100 MHz to three.6 GHz, and declared itself a market chief by way of low-band spectrum.

Presumably your PR groups attended the identical coaching course …

Vodafone, whose 3.6 GHz holdings have been at 90 MHz by the way in which, was a bit extra measured, shared its intention to enhance 5G protection, even indoors, and was the one one of many three to say the public sale course of itself.

“Vodafone welcomes the very best situations provided by the federal government for this spectrum public sale, which represents an essential step in direction of attaining a sustainable and economically viable sector vital for continued funding in connectivity,” stated Colman Deegan, CEO of Vodafone. Spain.

The truth is, the public sale result’s higher for telecommunications firms than for the federal government.

Ministry of Economic system and Digital Transformation of Spain (MINECO) improved public sale situations in an try and encourage operators to bid extra competitively. Along with providing the flexibility to increase the validity interval of licenses from the preliminary 20-year interval for an additional 20 years, the state additionally lowered reserve costs from these it proposed final yr. Minimal supply costs have been lowered by a median of 15%, lowering the mixed reserve worth to € 995.5 million from € 1.17 billion.

As we now know, the public sale whole didn’t attain that preliminary minimal worth. Then it could possibly be argued that the federal government’s technique failed. Or you could possibly think about that the much less operators should pay for spectrum, the extra they are going to be capable of spend money on their networks and, in concept at the least, the much less they must cost customers. That final level could possibly be an essential consideration in Spain within the coming years, with the fourth participant Masmovil growing competitors and protecting costs low.

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