The Ministry of Economy and Enterprise begins the first auction of 5G licenses

The Ministry of Economy and Business will start next week the first auction in Spain of licenses for the use of the radio spectrum for the provision of 5G services. This is the first step for the deployment of the networks necessary for the development of the 5G system that will place Spain among the most advanced countries in the promotion of this new technology.

5G technology is not only the new paradigm of mobile communications, but it will be the essential technological component in the digital transformation. Its deployment will allow the development of the Internet of Things, big data, robotics or virtual reality, with a transversal effect on society and the economy during the next decade, being a catalyst of the attraction of investment and lever of an inclusive growth by contributing to reduce the digital divide.

Characteristics and development of the auction

The auction will tender a total of 200 MHz in the 3.6-3.8 GHz frequency band and will involve the four main operators in the Spanish mobile phone market that have submitted a request to take part and have been admitted: Mas Movil, Movistar, Orange and Vodafone.

The 200 MHz is distributed in 40 blocks of 5 MHz each, all of them national eremu. The starting price of each block has been set at 2.5 million euros, in total 100 million euros for the 200 MHz that are being tendered. The concessions will last for 20 years.

The operators participating in the auction shall respect the maximum frequency limit available to the same operator in the 3.4-3.8 GHz band, set at 120MHz.

The tender will be conducted electronically, through a simultaneous upward auction mechanism of multiple rounds. Bidders shall formulate their bids within the duration of the round. The process will end when no new bids are received in a round.

The auction will take place in rounds scheduled by the Bureau, between 10 and 18 hours, from Monday to Friday. The rounds will have a maximum duration of 30 minutes and will be scheduled at least 15 minutes before their start time.

The auction that now begins is part of the National Plan 5G 2018-2020. With the process that is now beginning, the radio spectrum tenders called for by publication in the Official State Gazette on May 26, 2018 will be completed. The operators arranged until June 29 to submit their applications.

The 3.4-3.8 GHz band (3400-3800 MHz) has been identified as the primary band for the introduction of 5G-based services in Europe. Hence, the National 5G Plan provides for the bidding of the 200 MHz band 3.6-3.8 GHz (3600-3800 MHz) as a priority.