An EU-funded scheme in Spain will target sparsely populated rural areas, with the aim of closing the digital divide within two years
Up to €500m (£428m) available for 5G rollouts
The Spanish Government has confirmed the imminent launch of a new subsidy scheme to support the rollout of 5G services in rural areas. The ‘5G Redes Activas’ initiative – which forms part of the overarching ‘Universalización de Infraestructuras Digitales para la Cohesión’ (UNICO) programme – is set to begin allocating funds from the end of September 2023, with the aim of helping operators that have 5G spectrum to extend network coverage to municipalities with less than 10,000 inhabitants. According to the Secretary of State for Telecommunications and Digital Infrastructure, the scheme will have a budget of €450-500m (£385-428m), which will come directly from the EU. Recipients of public money must ensure their projects are completed by the end of June 2025.
Reflective of schemes elsewhere in Europe
The funding available will build on the €500m (£428m) the Government had already approved in July 2023, under the ‘UNICO Banda Ancha’ (UNICO Broadband) initiative, for the financing of towers and fibre backhaul, as well as the €76.3m (€65.3m) announced in February that will go to satellite operator Hispasat as the sole winner of ‘UNICO Demanda Rural’ (UNICO Rural Demand) funding. Within two years, Hispasat will be required to offer satellite connectivity nationwide at a cost to end users of no more than €35 (£30) per month. ‘5G Redes Activas’ complements other UNICO initiatives focused on R&D and public services, and reflects similar mobile-centric subsidy schemes, including the Shared Rural Network in the UK and the Italy's €2bn (£1.7bn) 5G programme, which is supported by the EU’s Recovery and Resilience Facility.
Digital divide in fixed broadband already closed?
According to Secretary González Veracruz, the launch of ‘5G Redes Activas’ ensures that 5G will reach parts of Spain that would not otherwise be the case, and follows the successful efforts the Government has already made to “break the fixed digital divide” between urban and rural locations. As we have found, many Governments are offering subsidies to operators to deploy gigabit-capable broadband in non-commercially viable areas. Public funding varies considerably in absolute terms and when considered on a per household basis, with concerns in some countries that high subsidies could risk crowding out private sector investment.
