The Government will lengthen usage rights by up to 10 years but wants to see operators invest in return
The Government states that its decision shows it understands the needs of industry
On 20 June 2024, Spain’s Ministry for Digital Transformation and Civil Service announced its decision to extend spectrum licences by up to 10 years for frequencies awarded ahead of the new General Telecommunications Law, which came into force in late June 2022. There will be no extra cost for this extension for the affected mobile operators (Telefónica, Vodafone, Orange and MasMovil – the latter two having now merged to create MasOrange). The measure, made by the Secretary of State for Telecoms and Digital Infrastructure, follows a public consultation launched in May 2023, as well as hearings with relevant stakeholders and the submission of reports by the CNMC – the country’s competition authority and sectoral regulator – and the State Attorney’s office. The Ministry states that its decision shows it has listened to the sector and seeks to “encourage investment in deployment and innovation”.
The latest auctions of 5G spectrum allow for a doubling of the maximum licence term to 40 years
Through the General Telecommunications Law, the Government increased the maximum term of spectrum licences from 20 years to 40 years, a move in line with the revised European Electronic Communications Code and aimed at providing greater certainty for industry over a longer period. According to our Spectrum Tracker, recent auctions in the 700MHz and 26GHz bands in Spain have resulted in licences awarded for the maximum time possible under law – albeit by adopting an initial 20-year licence term that can be extended by another 20 years. The Ministry’s latest measure is therefore focused on bands awarded prior to 2022, including 800MHz, 900MHz, 1800MHz, 2.1GHz and 2.6GHz that are currently used by 2G, 3G and 4G technologies, and are due to expire between 2028-2030. It also targets the 3.5GHz range, which has been employed by operators to deliver 5G services and may see licences (currently set to expire in 2038) extended by up to 10 years.
Similar proposals in Germany would come with strict coverage obligations that have been criticised by operators
According to María González Veracruz (Secretary of State for Telecommunications and Digital Infrastructure), the spectrum licence extensions represent yet another policy action geared towards supporting the sustainability of a sector the Government considers “strategic”, while improving Spain’s levels of connectivity and competitiveness. Veracruz states the extensions will save operators hundreds of millions of Euros that can be reinvested in network development, complementing €2.5bn (£2.12bn) in public funding that will be available to boost mobile network rollouts. The decision also reflects considerations being made by regulators elsewhere in Europe to pursue spectrum licence renewal, rather than revocation and reallocation. In Germany, BNetzA issued a draft decision to extend usage rights for spectrum in the 800MHz, 1800MHz and 2.6GHz bands by five years to the end of 2030. However, unlike in Spain, BNetzA would attach new coverage obligations to the longer licence terms, which have been described by Deutsche Telekom as disproportionate, expensive and unrealistic.
