This week, the Spanish government announced that it would auction off spectrum in the 700 MHz band by July 21 to deploy 5G. Telecoms.com reported that the government is sweetening the offer by improving commercial terms to encourage bids.
The starting prices have dropped by 12.5 percent to 20 percent depending on the frequency bands, resulting in an overall discount of 15 percent, reported Telecoms.com. The government is looking at a minimum of $1.2 million as a starting price.
After several delays, the Minister of Economy signed an official release announcing the auction by the Spanish Ministry of Economic Affairs and Digital Transformation (MINECO). The upcoming auction is the next step in “Spain’s 5G National Plan 2018-2020.”
To avoid the disappointing results of the last auction of 3.4-3.6 GHz spectrum this past February, which resulted in only two of four operators bidding (Telefonica and Orange), the government is putting incentives in place. It’s offering seven tranches of spectrum, with two paired 10 MHz blocks and two paired 5 MHz blocks on the 703-733 MHz and 758-788 MHz bands for FDD deployment, and three 5 MHz blocks on the 738-753 MHz band for supplementary downlink (SDL).
The valid period is also being extended. The official period is 20 years, and auction winners will be offered a one-off renewal period of another 20 years, which is new, according to Telecoms.com.
The government hopes that all four operators – Telefonica, Orange, Vodafone, and MásMóvil – will bid amid the modified perks. Qualified bidders should submit their applications by July 2.
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