To carry Internet to every corner Spain. This is the mission of the Government, which launched €544 million worth of aid for the delivery of technology services at the beginning of October. 5G In municipalities with a population of less than 10,000. This country strategy, european funds Next Generation EU is also an opportunity for large Internet operators. telecommunication.
5G was presented as a real revolution. fifth generation mobile phone It will allow users to connect to the network faster, with less latency, and via more devices simultaneously. The increase in speed and power will allow this technology Open the door digitization and thus represents, according to La Moncloa, “an economic and social transformative element.”
Spain wants to take the lead in the rollout of 5G. For this reason, the Spanish branch of the British vodafone chose the country to launch its first commercial network. In June 2019, citizens experienced change for the first time. connection This was limited to just a few cities, but has since been expanded and normalized. TelephoneFrench Orange And MoreMobile They launched their network in September 2020, expanding it to more and more locations. The latest available data from June 2022 shows that actual 5G phone coverage has already reached 58.18% of the region; This rate is far from the 33.51% recorded in 2021.
competitive fight
The emerging 5G market is seen as a lucrative business opportunity. This has dragged the big four ‘telecommunications companies’ that dominate the industry into a three-way competitive battle – Orange and MásMóvil announced their merger in July last year, still awaiting approval – becoming the first companies to plant their flag on solid ground.
Telefónica is taking the lead. Spanish multinational company led by Jose María Álvarez-Pallete deployed 2,000 antennas broadband 3.5 GHz is the most powerful on the market, accounting for 65% of the total. Thus, it would leave its two main competitors behind in this field. However, Orange was the fastest to activate its services 5G+ anyone 5G SA, which has better coverage. He did this in February; Telefónica, in July.
In addition, in 2022, the company earned a revenue of 12 billion 497 million euros, while Orange earned 4 billion 647 million euros and Vodafone earned 3 billion 907 million euros. Movistar drives the market Internet mobile with 26.7% share, Vodafone/Or not Orange/ with 23.9%caztel with 21.7% and MásMóvil with 18.2%. He is also a leader in terms of line. mobile phone It represents 27.4% of the total.
Geopolitical veto
This competition also depends on geopolitical factors. So the Government’s aid, which will provide €543.8 million towards the deployment of 5G in rural areas, will depend on the “high risk” some manufacturers may pose. In practice, this means a veto for Chinese companies. Huawei And ZTEIt is also restricted in other Western countries. United States of America or the United Kingdom. And both companies are blamed by both European Union (EU) and to help across the Atlantic Beijing In cyber espionage studies.
Although Spain has set aside this ban, the practice established in public aid for the expansion of 5G harms Vodafone and Orange because the two ‘communications companies’ depend on equipment and services produced by Huawei in many provinces. With their suppliers banned, it will be much harder for them to set up a broadband network in rural Spain. However, this decision benefits Telefónica, as the Spanish group’s 5G infrastructure is supported by the Finnish infrastructure. Nokia’s and Swedish Ericsson, is considered safe. According to El País, Vodafone and Huawei had already objected to the bases established by the Ministry of Economic Affairs and Digital Transformation.