5G regulation and law in Spain

Deployment of 5G was first announced by Vodafone and then by Telefónica (Movistar) on 1 September 2020, with NSA (non-stand-alone) and DSS (Dynamic Spectrum Sharing) technologies. As a consequence, the core of the service was 4G and the radio network was 5G+4G. NSA services do not allow users to enjoy all the advantages of 5G, especially in network slicing, download speed and latency, but represent a clear advance over 4G+. Using NSA 5G services meant a quick development of 5G services: at the end of 2020, 75% of the population including all 50 major cities had Telefónica (Movistar) NSA 5G coverage.

According to National Markets and Competition Commission (in Spanish, Comisión Nacional de los Mercados y la Competencia, CNMC), in 2021 network operators were already commercialising mobile services over 5G networks. Some 90% of total traffic is still handled over 4G networks (https://www.cnmc.es/prensa/informe-anual-telecos-2021-20220729). By the end of 2021,  5G covered 82.3% of the population, according to this report.

Almost all of it is still NSA 5G. Vodafone started with a very limited SA 5G network in 2021, and has made timid advances. In July 2022, Telefónica successfully developed an experiment on SA 5G with network slicing working with Ericsson, but did not offer this service commercially (https://www.telefonica.com/es/sala-comunicacion/telefonica-y-ericsson-pioneros-en-automatizacion-de-network-slicing-5g-sa/). Their idea is to offer SA 5G commercially step by step, starting in 2023, and to reach 100% of population with SA 5G in a few years. Orange has already started with SA 5G in February 2023, reaching a 90% coverage in Madrid, Barcelona, Valencia and Sevilla. By January 2023, other operators were generally not offering SA 5G.

In January 2023, the total deployment of 5G according to https://www.nperf.com/es/map/5g is the following:

In the near future, 5G operators will have  coverage obligations resulting from new spectrum rights (see below).

5G investments are not currently being monetised differently  as far as consumer connectivity is concerned. Most mobile communications operators are offering 5G services at the same price as 4G: Vodafone, Orange, Yoigo, and also Telefónica Movistar, haven’t increased the price of the consumer 5G , as compared with 4G.

5G is more efficient than 4G and allows more density of connected devices (one million per km2 as compared with 100,000 per km2 in 4G+), as well as more efficient electricity consumption for a greater number of users. Therefore, lower costs could also drive monetisation.

In terms of revenue, B2B products and services including industrial, medical, technical and other purposes including network slicing (available with SA 5G), will likely drive monetisation.

Yes. All 5G mobile operators as well as third-party integrators and consultants are offering industrial 5G solutions, and this is set to grow when SA 5G is deployed.

From the beginning, there have been multiple private and public-sponsored industrial 5G initiatives and projects.

In January 2018 Telefónica launched a 5G project called “Ciudades Tecnológicas” in Talavera de la Reina and Toledo, where the operator has been carrying out trials and developing services in sectors such as Industry 4.0, tourism and connected cars.

In April 2019, public business entity Red.es awarded the first two public projects to Telefónica and Vodafone in Galicia and Andalusia respectively. Since then, both operators have been carrying out 5G trials alongside  companies from different sectors. The aggregate budget for both projects is more than EUR 36m, of which more than EUR 10m is co-financed by Red. (https://avancedigital.gob.es/5G/Paginas/Pilotos5G.aspx)

On 4 October 2019 the Council of Ministers authorised  Red.es to grant a second subsidy package  worth EUR 45m to support  the development of eleven 5G private sector pilot projects  within the framework of the National 5G Plan. Red.es awarded eight 5G pilot projects, which have a combined budget of almost EUR 40m, of which nearly EUR 12m will be co-financed through the European Regional Development Fund. The projects were developed in 2020 and 2021 in Andalusia, Castile-La Mancha, Catalonia, the Community of Madrid, the Community of Valencia, Extremadura, Galicia and the Basque Country. They demonstrated that it was possible to explore and identify use cases and 5G applications in thirteen different sectors, from security to education and industry, including agriculture and tourism (https://www.red.es/redes/es/actualidad/magazin-en-red/redes-selecciona-ocho-nuevos-proyectos-piloto-5g-con-un-presupuesto):

• Andalusia. The project has a budget of EUR 1,228,014 and will be developed by Telefónica I+D and Nokia. Use cases will be developed in Málaga in the areas of security, intelligent cities, education and industry.
• Castile-La Mancha. The project has a budget of EUR 1,231,816 and the applicants are Telecom CLM, Furious Koalas and Amanto Soluciones Toledo. The applications will be developed in the television, health and tourism sectors.
• Catalonia. The project has a budget of EUR 5,392,668. The applicants are a joint venture formed by Retevisión, Xfera, Parlem Telecom, Nae Comunicaciones, Atos Spain, Aumenta Solutions, Nearby Computing and Lenovo. The applications target the educational, tourism and transport sectors.
• Community of Madrid. The project has a budget of EUR 2,462,305 and will be developed by Telefónica and Ericsson, with applications in industry, mobility, health and education.
• Valencian Community. The project has a budget of EUR 10,145,234 and the participants are Orange Espagne, Huawei, Arborea Intellbird, CFZ Cobots, Global Omnium Idrica, Etra Research and Development, Red Eléctrica, Comunicaciones Innovación and Robotnik. The pilot has use cases in the communications, transport, tourism, health and industrial sectors.
• Extremadura. The project has a budget of EUR 3,141,628, and is run by  Gamma Solutions. They will develop a comprehensive training platform in minimally invasive surgery that will allow medical students and residents to access large volumes of educational material such as pre-operative studies or live surgeries. It also includes use cases in mobility and education.
• Galicia. The project involves Orange Espagne, Ericsson, Cinfo Contenidos Informativos personalizados, Gamera Nest and Optare Solutions and has a budget of EUR 8,999,369. It will implement an access control system in the Vigo Port Fish Market, as well as a surveillance system using drones with very high resolution cameras. It will also develop other use cases in tourism and security, agriculture and education.
• Basque Country. The project has a budget of EUR 7,149,323 and the participants are Euskaltel, R Cable, Orange, Xfera ZTE Spain, ZTE Managed Services Southern Europe, Vicomtech, Ceit IK4, Datik, Compañía del Tranvía de San Sebastián, Gestamp Construcciones and Auxiliar de Ferro +Ikusi. The pilot includes several use cases, including-cyber security and production process monitoring (https://www.red.es/redes/es/actualidad/magazin-en-red/redes-selecciona-ocho-nuevos-proyectos-piloto-5g-con-un-presupuesto).

In October 2020 Telefónica launched its first 5G logistics project (interconnection of logistics machines for the retailer El Corte Inglés in Valdemoro, Madrid), and in November 2020 Telefónica launched the first complete 5G connection project for car parts manufacturer Gestamp in Barcelona).

Cellnex, using the spectrum of MasMóvil, announced in November 2020 that it would implement 5G in the BASF chemical plant in Tarragona.

On 10 January 2023 the Government announced a call to raise EUR 60m to fund 5G projects including application testing and validation in sectors such as tourism, security and connected vehicles (https://www.lamoncloa.gob.es/serviciosdeprensa/notasprensa/asuntos-economicos/Paginas/2023/100123-ayudas-proyectos-5g.aspx). This fundraising targets 5G projects  with a medium maturity level (Technology Readiness Level 5-6) and is the second such process  of the “Programa UNICO SECTORIAL 5G 2023”. (https://portalayudas.mineco.gob.es/Programa_UNICO_SECTORIAL_2023/Paginas/Index.aspx).

There may emerge a new framework if, as a result of a recent modification of the spectrum regulation (Royal Decree 16/2023, of 17 January), some of the frequencies in the 26 GHz band are awarded directly to any number of industrial projects without the need for an auction, for self-supply purposes (see below under 4). This same band can be used to allocate licences to different industries in different places.

All four 5G operators (Telefónica, Vodafone, Orange and MasMóvil) have been actively providing services to the industry (e.g. private networks for industries such as ports or refineries) with the 700 MHz and the 3.4 to 3.8 GHz, there so far has not been enough economic or technological demand to justify reserving this spectrum for direct use by the industry through self-supply. The operators must provide services in certain main airports, ports, train stations, roads, as well in a number of municipalities. There are public subsidies for investing in 5G coverage in roads, railways and rural areas (Order ETD/507/2022).

The technical features of the 26 GHz band (lower penetration, less signal propagation, more broadband capacity and speed, less latency) mean it is possible to directly allocate some frequencies within this band to industry, for use in specific premises, to any number of recipients and without an auction. In this sense, on 10 July  2020, the government (Secretario de Estado de Telecomunicaciones e Infraestructuras Digitales) announced it was considering reserving  part of the 26 GHz spectrum (with much shorter range) for industry and individuals, without the intermediation of telecommunication companies. https://cincodias.elpais.com/cincodias/2020/07/10/companias/1594374052_821391.html This announcement resulted in Royal Decree 16/2023 of 17 January, which modified spectrum regulation to allow the direct award of frequencies in the 26 GHz band.

Moreover, the spectrum auction regulations establish the maximum number of frequencies that can be held by each operator, thus preventinging the hoarding of frequencies and maintaining free competition:

• In the 3.4 to 3.8 GHz band, the limit is 120 MHz (Clause 14, Order ETD/1248/2020).
• In the 700 MHz band, the limit is 2x15 MHz (there is another joint limit of 2x35 MHz together with the frequencies in the 800 MHz and 900 MHz) (Order ETD/534/2021).
• In the 26 GHz auction (2022), there is a 1 GHz limit (Number 6, Order ETC/1059/2022).

There have been five relevant public tenders to award frequencies for 5G:

• A first auction in 2015-2016 (Order IET/2718/2015, of 11 December) granted a limited amount of  (2x20MHz) spectrum rights in the 3.5 GHz band. Now these spectrum rights can be used for 5G, by virtue of the technology neutrality principle. See below for the spectrum allocation.
• A second auction in 2018 (Order ETU/531/2018) with 40x5 MHz in the 3.6 to 3.8 band (see below the spectrum allocation).
• A third auction in 2020 (Order ETD/1248/2020) with 20 MHz in the 3.4 to 3.6 GHz band (see below the spectrum allocation).
• A fourth auction in 2021 (Order ETD/534/2021) with 2x10, 2x10, 2x5, 2x5, 5, 5 and 5 MHz in the 700 MHz band. Orange was awarded 2x10 MHz, Telefónica 2x10 MHz and Vodafone 2x10 MHz.
• A fifth auction in 2022 (Order ETD/1059/2022) with 12x200 MHz state concessions amounting a total 2,400 MHz and 38 regional concessions amounting to a total 400 MHz, all of them in the 26 GHz band. Some of these concessions were not allocated. Telefónica was awarded 1 GHz, Vodafone 400 MHz, and Orange 400 MHz.

The 5G frequencies in the 3.4 to 3.8 GHz band were later reordered in 2021-2022 as follows (see in https://www.cnmc.es/prensa/reorganizacion-espectro-5g-cnmc-20211104):

When the terrestrial digital television frequencies are finally liberated (14 February 2024, according to Royal Decree 16/2023), a sixth auction will take place, this time in the 700 MHz band.

Telefónica Movistar is also using 4G spectrum bands (1800 MHz and 2100 MHz) for 5G, using DSS (Dynamic Spectrum Sharing), with lesser 5G features.

There are some previous requirements for winning frequencies under these tenders:

• In all tenders, the tenderer must be qualified as operator, in accordance with the definition of operator in the General Telecommunications Law.
• The tenderer shall demonstrate sufficient economic, financial, technical or professional solvency. An annual turnover of the three years previous to the auction is required (in the 2018 auction, EUR 90m). The telecommunication networks installed, and the relevant electronic communication services rendered by the tenderer during the three years before the auction should have a certain value (in the 2018 auction, EUR 42m).
• The tenderer shall file, together with its application, documentary proof of a bank or similar guarantee to take part in the auction.
• See above the limits on the amount of frequencies to be awarded in each auction.

Within the limits above, spectrum was awarded based on price.

As a general rule:

• The concessions grant non-exclusive rights. No future indemnity for new players.
• Service neutrality and technology neutrality.
• Spectrum rights cannot be sold to third parties during the first two years. Afterwards, only with previous administrative authorisation.

Regarding the term:

• First auction (2015-2016, 3.5 GHz band): ending 31 December 2030
• Second auction (2018, 3.6 to 3.8 band): 20 years
• Third auction (2020, 3.4 to 3.6 GHz band): ending 4 December 2038
• Fourth auction (2021, 700 MHz band): 20+20 years
• Fifth auction (2022, 26 GHz band): 20+20 years

These are the coverage obligations in the 700 MHz auction (2021): Telefónica must cover all municipalities of over 20,000 inhabitants before June 2025; the same applies to Orange and Vodafone, but in municipalities of over 50,000 residents. There are additional coverage obligations for airports, ports, train stations and roads (all of them listed).

As regards the 2018 tender:

• Price: minimum EUR 2.5m / 5MHz. Total price resulting from the tender: EUR 437m
• Annual taxes: Operators must pay EUR 868m for spectrum use during the licence duration

Regarding the 2021 700 MHz tender:

• Price: minimum EUR 995.5m. Total price resulting from the tender: EUR 1,183,09bn. Telefonica paid EUR 310.09m, Vodafone EUR 350m and Orange EUR 523m.
• Annual taxes: Operators must pay an annual fee.

And regarding the 2022 26 GHz tender:

• Minimum price and total price (the same): EUR 36.2m. Telefónica paid EUR 20m, Vodafone EUR 8m, and Orange EUR 8m.
• Annual taxes: Operators must pay the annual fee.

The general 5G framework is defined in the Agenda España Digital 2025 (Hoja de Ruta para la Transformación Digital). It has already been partly implemented through spectrum auctions, namely the coverage obligations in the 700 MHz auction.

The national recovery plan, as defined in the Acuerdo del Consejo de Ministros (27 April 2021), was approved by the European Commission’s Recovery, Transformation and Resilience Plan (PRTR),

On 14 February 2024 the spectrum used by digital terrestrial television will be liberated (Royal Decree 16/2023), allowing the sixth spectrum auction (700 MHz band) to take place.

Other government plans that relate to 5G include:

• Plan para la conectividad de personas, empresas y territorios
• Estrategia de impulso a la tecnología 5G

The Government declared (16 November 2020) that it would invest EUR 883m in 5G in 2021. https://portal.mineco.gob.es/es-es/comunicacion/Paginas/201116_np_comisionteleco.aspx

The 5G specific rules (apart from general spectrum and radio emissions regulations) are in the tender conditions.
(Please see above)

There have not been any publicly disclosed issues in the implementation of 5G projects or any decisions regarding non-compliance with 5G concessions obligations.

The public has voiced minimal concerns about health being impacted by 5G emissions.

Concerns about 5G interfering with airport and airplane systems have been resolved. In November 2022, the European Commission announced measures to allow passengers to use 5G and have their mobile phones switched on during all flights.

There is no focused 5G network or spectrum sharing regulation yet, apart from provisions on shared use in the Law 11/2022 (art. 92).

The CNMC supports subsidies for passive infrastructure for high-speed broadband services in unprofitable areas, as mentioned in its report on the draft order (https://www.cnmc.es/prensa/IPN-subvenciones-despliegue-5G-20220329).

Yes, there are some network sharing agreements.

Orange and Vodafone reached an active 4G network sharing agreement on 25 April 2019, which will be extended to 5G. It includes 14,800 sites and cities and towns with fewer than 175,000 residents.

On 1 October 2019, Orange and MásMóvil announced an additional network sharing agreement to deploy 5G in the 40 largest cities (about 4,500 sites, covering 35% of the national population), plus a roaming agreement for MásMóvil to provide 5G services through the Orange network in the parts of the country where MásMóvil had yet to deploy its network.

In December 2019, Cellnex acquired 1,500 towers from Orange, which agreed to lease them for 10 years (with the option to extend this for another 10 years).

In June 2020, Másmóvil and Movistar updated their network sharing agreement.

On 15 October 2020, Orange and Euskaltel (using the trademarks Euskaltel, R Telecable and Virgin) reached an agreement that allows Euskatel to use the Orange network and act as a 5G virtual mobile operator from 1 January 2022.

In 2022, Telefónica signed an agreement with Vantage Towers (81% owned by Vodafone) to deploy 5G (https://cincodias.elpais.com/cincodias/2022/05/16/companias/1652725463_510537.html).

The rules have not yet been established. The Law (art. 14.2 of the Law 11/2022 of 28 June General on Telecommunications) said 5G network operators must make agreements with other operators.

The 5G cyber-security framework, adopted through the Royal Decree-Law 7/2022 of 29 March to guarantee secure 5G electronic communications networks and services (https://www.boe.es/buscar/act.php?id=BOE-A-2022-4973), includes provisions on the classification of 5G suppliers as high risk (art. 14). Although this Royal Decree-Law states that the government, by means of a resolution by the Council of Ministers, following a report from the National Security Council and after hearing from the relevant 5G operators and suppliers, may classify certain 5G suppliers as high risk, but has yet to carry this out (https://elpais.com/espana/2023-01-04/el-gobierno-da-largas-a-la-lista-negra-de-proveedores-de-5g-para-evitar-un-choque-con-china.html).

Spanish security agencies have approved some Huawei equipment: for instance, Decision 1A0/38132/2020, of 20 May 2020, of the Spanish National Cryptologic Centre (CCN-CERT) certified the security of the product "Huawei 5900 Series 5G gNodeB Software V100R015C00SPC108", developed by Huawei Technologies Co., Ltd.

Regarding data protection, in May 2020 the Spanish Data Protection Agency issued an introduction to 5G technology and privacy risks  (https://www.aepd.es/sites/default/files/2020-06/nota-tecnica-privacidad-5g.pdf https://www.aepd.es/sites/default/files/2020-06/nota-tecnica-privacidad-5G-en.pdf).

The government is working on a National Security Framework for 5G networks and services. This is a relevant measure to risk assess 5G suppliers (art. 22 of the Royal Decree-Law).

Spain is one of the largest European countries (together with Germany, Italy, Poland, Portugal and Austria) purchasing significant amounts of 5G equipment from Chinese vendors (see Strand Consult´s report “The Market for 5G RAN in Europe: Share of Chinese and Non-Chinese Vendors in 31 European Countries”, mentioned here).

Based on the available information, Spain has not signed the US Clean Network initiative (https://2017-2021.state.gov/the-clean-network/index.html).

Telefónica had been working with Huawei to deploy its core 5G network, but has announced that it will instead rely on Ericsson and Nokia in future. https://www.elespanol.com/invertia/empresas/tecnologia/20200902/ericsson-nokia-desplegaran-partes-iguales-telefonica-espana/517449327_0.html

A reported 38% of the Spanish 5G network is based on Huawei equipment:  https://www.elconfidencial.com/tecnologia/2022-12-21/huawei-medula-redes-europeas-operadoras_3543416/