Spain’s 5G Spectrum Auction In The 700 MHz Band Closes At €1.01 Bn, 1.5% Over Starting Price

5g networkAn interconnected city at night

Operators will pay 1.01 billion euros, 1.5% more than the starting price of 995 million euros, for the 4 large blocks, 2×10 MHz. The 3 small blocks, 2×5 MHz, were left without bids. Telefónica, Vodafone and Orange were awarded the licences, while MásMóvil did not bid.

Telefónica was awarded block 1 and will pay 310 million euros (starting price 270 million euros), Vodafone block 2 and will pay 350 million euros and Orange was awarded blocks 3 and 4 paying 350 million euros. Vodafone’s and Orange’s blocks were awarded at the starting price.

Telefónica’s block is for a lower amount due to stricter coverage commitments. Telefónica is committed to providing 5G coverage by June 2025 to all municipalities with more than 20,000 inhabitants, airports, ports, high-speed train stations, motorways, dual highways and multi-lane roads.

The licences will be valid for 20 years, extendable for another 20 years.

The joint award price of the licences has been slightly higher than expected after the government lowered the initial figure by 15% and only the Telefónica block paid more than the starting price (+15%).

5G brings a technology that significantly increases the speed and capacity of connectivity and is critical to the process of digitalisation of economies (essential for robotisation of manufacturing processes, AI, autonomous vehicles, IoT, etc.).

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.