Every stakeholder in Spain’s telecommunications sector is firmly committed to the task of fully rolling out 5G connectivity nationwide. But achieving the target of 100% coverage of the 5G network is also a strategic goal for the government.

By way of proof, ministers have already publicly launched a consultation on the terms and conditions of the tender for the 700 Mhz frequencies. Fibre optic neutral operators as well as telephone operators and other companies interested in 5G technology are already aware of the cost of the various frequency blocks that will be auctioned off, along with the requirements of acquiring them.

In this sense, the amount of investment needed doesn’t appear to represent any obstacle to the rapid and effective rollout of the technology within a reasonable time frame, which has been one of the most prominent historical concerns expressed by stakeholders, in this context.

• Better economic conditions, but only for those committed to the 5G network

The public consultation makes clear that such competitive prices are bound by a firm commitment to the effective rollout of 5G connectivity technology by concession holders. Another three paired 30-Mhz blocks will be added to an original five over twenty years – without extension or the possibility of automatic renewal – but only downstream over the same period of time. The total minimum figure will amount to €1,170 million.

The first paired block has a much lower starting price – €320 million for 2x 10 Mhz – than the other concessions. However, operators must commit to providing an optimal service and achieve 100% coverage by the year 2023. They have to cover 25% of all areas with more than 20,000 inhabitants in the first year of the tender, 60% in the second, and all of the aforementioned coverage in the third year.

This pressure to optimise 5G coverage by 2023 will be slightly reduced for the auctioning off of the four remaining paired blocks, which will have starting prices of €200 million for each of the 2x 5 Mhz blocks.

However, operators that opt for these blocks will have to hit the ground running in the first year, as they’ll need to offer coverage to 50% of areas with more than 50,000 inhabitants in those first twelve months. Unpaired blocks will have a starting price of €10 million for each 5 Mhz block, although they carry no obligations in terms of coverage.

• Wholesale access to 5G connectivity from day one

With the exception of those operators opting for block A, all of them must – as a requirement – offer wholesale access to their 5G networks to promote the availability of the technology to every operator in the telecommunications sector from the very start of their rollouts.

Furthermore, as one of the conditions set out in the tender process, operators that aren’t awarded concessions will still be able to provide 5G services to the general public from day one, facilitated by concession operators, which is a new approach, compared to previous tenders.

As a complementary measure to guarantee the commitment of successful bidders, in addition to certain conditions on ‘adherence’ to the strategic deployment policies of the 5G network, they won’t be permitted to transfer any of the licences or rights to use the public radio-electronic domain they obtain until two years have elapsed from the start of their concession.