Spain will begin auctioning spectrum in the 3.6-3.8 GHz band on 18 July, the Economy Ministry announced. The four leading operators, Movistar, Vodafone, Orange and Masmovil, will bid for a total of 200 MHz, sold under 20-year licences for lots of 5MHz at a minimum price of EUR 2.5 million each.
The electronic auction will take the form of successive simultaneous bids until a winner is declared. The auction for 5G spectrum will take place from 10.00 to 18.00 hours daily until the entire allocation has been sold. The results will be announced at the end of each session at 18.00 hours on the ministry's website.
Under Spain's 5G rules, each operator is permitted to acquire no more than 120 MHz in the 3.4-3.8 GHz band. Telefonica, Orange and Masmovil already hold 40 MHz each in the 3.4-3.6 GHz band and may thus bid for a maximum 80 MHz each, while Vodafone has none and can bid for the maximum 120 MHz available per operator.
The 3.4-3.8 GHz band is considered key to the successful launch of 5G services and will be capable of delivering data transfer speeds of 1-3 Gbps in urban areas equipped with small cells.
A minimum of 100MHz of spectrum is considered necessary for a high-quality 5G service and communications and markets regulator CNMC proposed in April that a maximum of 235 MHz of 5G spectrum be allocated per operator within the so-called mid-bands of 1.8 GHz, 2.1 GHz, 2.6 GHz and 3.4-3.8 GHz. Telefonica, Vodafone and Orange already have 135 MHz in the 1.8 GHz, 2.1 GHz and 2.6 GHz bands.
Under Spain's 5G plan, successful bidders will be expected to pay one twentieth of the winning price upfront and settle the balance via equal annual instalments over the lifetime of the concession.
