Wednesday, September 22

The 5G auction will start in July with seven state concessions

Nadia Calvin.

Nadia Calvin.
Europa Press

The Ministry of Economic Affairs and Digital Transformation has published this Monday the Order of Bases that establishes the conditions that will govern the bidding of concessions in the 700 MHz band, one of the priority bands for the deployment of 5G technology.

The Department headed by Nadia Calviño has highlighted in a statement that these final bidding conditions “are the result of a consultative process almost unique in Europe and with no previous antecedents” in Spain.

The auction will begin before July 21 and a total of seven concessions will be put out to tender. Four of them correspond to two 2×10 MHz blocks and two 2×5 MHz blocks, in the paired band 703-733 and 758-788 MHz for upstream and downstream communications.

Three concessions in the 738-753 MHz band are also being tendered, each of which will assign the use of a 5 MHz block for downstream communications only.

All concessions are state-wide due to the strategic importance of this frequency band, the extensive territorial coverage it provides, the need to guarantee efficient use of the spectrum, and the aim of avoiding an irregular and fragmented deployment.

The auction will take place over the Internet, using a Electronic Auction Platform (PES) safe.

Companies that are interested in participating can submit their applications until 1:00 p.m. next July 2.

Exit prices

In December 2020, the draft conditions for this auction were submitted to public consultation and peer review within the Radio Spectrum Policy Group (RSPG) of the European Union.

As a result of this consultative process, some conditions have been modified, such as the revision of the starting prices, whose overall figure decreases by 15%, to 995.5 million euros compared to the 1,170 million euros of the public consultation.

The concession of frequencies has also been modified, which will have a minimum duration of 20 years, extendable for a further 20 years.

Regarding the coverage obligations, the list has included the specific municipalities, airports, ports, railway stations and highways to which operators must extend coverage with each concession.

Also included are the exact dates of the temporary milestones in which said coverage obligations must be met.

Together with the tender for the 700 MHz frequency band and other reforms, the Strategy for the Promotion of 5G Technology foresees a public investment of 2,000 million euros until 2025 to encourage the deployment of networks and services, of which 1,500 million are included in the Recovery, Transformation and Resilience Plan.

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