Spain aims to bring Internet to every corner of the country. This is the governing objective, backed by a government plan that began a €544 million tranche of aid in early October to support technology services. In small municipalities with populations under 10,000, the strategy leverages Next Generation EU funds and opens doors for large Internet operators to participate in the rural digital push.
5G has been framed as a genuine breakthrough. It promises faster connections, lower latency, and the ability to connect more devices at once. With these improvements, digital transformation is seen as a driver for economic and social advances, a sentiment echoed by national authorities as a core transformative element.
Spain aspires to lead 5G deployment. In pursuit of this goal, the Spanish arm of Vodafone chose Spain as the launch site for its first commercial network. The initial rollout occurred in June 2019 in a handful of cities and has since expanded and become more routine. French operator Orange and MoreMobile followed with a broader rollout in September 2020, extending coverage to additional locations. The latest data available from mid-2022 indicated that 5G phone coverage had reached about 58.18 percent of the region, a notable rise from 33.51 percent in 2021.
competitive fight
The thriving 5G market is widely viewed as a lucrative field, drawing the major telecom players into a fierce three-way competition. Orange and MásMóvil announced a merger in the previous year, a move that remains subject to regulatory approval as they stake a claim on a stable presence in the market. Telefónica has positioned itself at the forefront. The Madrid-based multinational, led by a chief executive, has deployed thousands of 3.5 GHz broadband antennas and commands a substantial share of the 5G landscape, giving it a lead over rivals. Orange moved quickly to activate its 5G Plus and 5G SA platforms, achieving broader coverage earlier in the process, with Telefónica following suit a few months later.
In 2022 Telefónica recorded revenue approaching €12.5 billion, while Orange reported about €4.65 billion and Vodafone around €3.91 billion. Movistar dominates mobile Internet with a significant share, and Vodafone, Orange, and MásMóvil together account for a large portion of the market. The sector continues to shape how consumers access mobile services and how networks evolve to accommodate growing data needs.
Geopolitical veto
Geopolitics also shapes the competitive landscape. Government aid is contingent on safeguarding against high-risk suppliers, a policy that effectively bars certain manufacturers. Chinese companies such as Huawei and ZTE face restrictions in several Western markets, including the United States and the United Kingdom, amid concerns about cyber security collaborations. These considerations influence how funding is allocated and which equipment providers are allowed to participate in rural 5G expansion.
Although Spain has not imposed an outright ban on suppliers, the public aid framework for 5G growth in rural areas complicates procurement for Vodafone and Orange. A reliance on equipment from Huawei could hinder deployment in various regions, whereas Telefónica benefits from a network built on Finnish and Nordic equipment from Nokia and Swedish Ericsson, regarded as safe options. Industry observers note that Vodafone and Huawei had previously raised objections to the policy bases established by the Ministry of Economic Affairs and Digital Transformation.