The sum is the reserve price for the acquired block and the total amount is to be paid in a single instalment once the auction process ends. In addition, an annual licensing fee of €15.5 million will be payable.
“Vodafone welcomes the improved conditions offered by the government for this spectrum auction, which represents an important step towards achieving a sustainable, economically viable sector necessary for continued investment in connectivity,” said Colman Deegan, CEO of Vodafone Spain.
“The new 5G frequencies acquired today will enable Vodafone Spain to accelerate the deployment of our leading 5G network in the coming months, ensuring that consumers and businesses can take advantage of digital transformation opportunities to support economic recovery after the pandemic.”
Vodafone Spain's acquired spectrum has initial holding rights until 2041, with an automatic renewal option with no additional fees for a further 20 years, taking its holing to 2061, subject to certain licence conditions.
The company says it will use the spectrum to continue offering 5G mobile services in Spain through, expanding its footprint and offering better coverage, including indoor buildings.
Overall, Vodafone Spain has the following spectrum holdings before and after the auction:
| Existing Holding | Purchased | Post-purchase |
700 MHz |
| 2x10 MHz | 2x10 MHz (exp 2041+20yrs) |
800 MHz | 2x10 MHz (exp 2031) |
| 2x10 MHz (exp 2031) |
900 MHz | 2x10 MHz (exp 2028) |
| 2x10 MHz (exp 2028) |
1800 MHz | 2x20 MHz (exp 2030) |
| 2x20 MHz (exp 2030) |
2.1 GHz | 2x15+5 MHz (exp 2030) |
| 2x15+5 MHz (exp 2030) |
2.6 GHz | 2x20+20 MHz (exp 2030) |
| 2x20+20 MHz (exp 2030) |
3.6 GHz | 90 MHz (exp 2038) |
| 90 MHz (exp 2038) |
In related news, March saw Vodafone Spain confirm it has reached its goal of being powered by 100% renewable electricity, following an agreement signed with Spanish energy company Iberdrola.
