Spain’s GSM operators were the big winners in the second round of licensing while the cable operators will be pleased to have managed to bag a set of licences.
IHS Global Insight Perspective | |
Significance | The second round of licensing in Spain has finished, raising EUR1.65 billion for the Spanish government. |
Implications | The GSM incumbents were the big winners, walking away with national licences. |
Outlook | The introduction of cable operators as regional mobile operators will boost competition in the mobile market. |
The auction for new 800-MHz, 900-MHz, and 2,600-MHz spectrum in Spain has concluded with the largest three mobile operators taking the lion’s share of the spectrum on offer. The auction raised EUR1.65 billion (USD2.38 billion) for the Spanish government. The results are summarised in the table below.
Auction Results | |||||
Operator | Frequency | Amount (MHz) | Population (mil.) | Price Paid (EUR) | Price per MHz per Population (EUR) |
France Telecom | 800 MHz | 20 | 47.7 | 391,941,101.49 | 0.411 |
Vodafone | 800 MHz | 20 | 47.7 | 458,518,962.62 | 0.481 |
Telefónica | 800 MHz | 20 | 47.7 | 454,868,524.56 | 0.477 |
Telefónica | 900 MHz | 10 | 47.7 | 169,000,000.00 | 0.354 |
France Telecom | 2,600 MHz | 40 | 47.7 | 45,096,363.89 | 0.024 |
Telefónica | 2,600 MHz | 40 | 47.7 | 44,438,131.50 | 0.023 |
Vodafone | 2,600 MHz | 40 | 47.7 | 59,074,871.54 | 0.031 |
Jazz Telecom | 2,600 MHz | 100 | 15.5 | 6,034,980.24 | 0.004 |
Telecable | 2,600 MHz | 20 | 1.1 | 708,317.12 | 0.033 |
Ono | 2,600 MHz | 180 | 22.3 | 13,300,538.99 | 0.002 |
Euskaltel | 2,600 MHz | 20 | 2.2 | 2,417,683.79 | 0.055 |
R | 2,600 MHz | 20 | 2.8 | 1,017,616.22 | 0.018 |
Telecom Castilla-La Mancha | 2,600 MHz | 20 | 2.1 | 598,034.67 | 0.014 |
Country-Level | 800 MHz | 60 | 47.7 | 1,305,328,588.67 | 0.456 |
Country-Level | 900 MHz | 10 | 47.7 | 169,000,000.00 | 0.354 |
Country-Level | 2,600 MHz | 140 | 47.7 | 172,686,537.96 | 0.026 |
The country-level totals do not match the results due to the sections of the 2,600-MHz spectrum being auctioned off in a regional manner.
Outlook and Implications
- GSM Operators the Big Winners: Telefónica, Orange and Vodafone were the big winners, taking national licences in the 800-MHz and 2,600-MHz bands. The digital dividend 800-MHz licences were the most sought after due to their wide range and indoor coverage. The operators will use the 800-MHz and 2,600-MHz spectrum for LTE networks. Yoigo is conspicuous by its absence; its plans for network enhancements will be through 1,800-MHz spectrum (see Spain: 13 June 2011: Orange and Yoigo Successful in Spanish Spectrum Auction).
- Big Boost to Competition: The regional 2,600-MHz licences will provide a huge boost to competition in Spain with six cable operators awarded licences. Of the new entrants, Ono has the greatest number of licences (nine), which will cover large parts of its cable and fixed-line infrastructure. The new entrants will use the mobile licences to provide quad-play services. Many of the new entrants are already mobile virtual network operators (MVNOs); the licensing will give them full control over their mobile networks and in the longer term will decrease their reliance on the GSM incumbents.