Mobile spectum sale to raise 2bln euros

 

Earlier today the Spanish government spoke of it's aims to raise between 1.5 and 2 billion euros from a previously announced sale of mobile spectrum.

Llast year asset disposals we announced, which included selling part of its national lottery and the part privatisation of airports operator AENA to reassure markets that Spain would not need a Greek-style bailout.

Ministry of Industry said last summer it would offer a total of 310 Mhz on different bandwidths.

The sale will require investment of 1.2 billion euros by telecoms operators and could lead to the creation of 40,000 jobs, the ministry annnunced in a statement. Spain is following the example of other countries aiming to stimulate telecoms competition in the telecoms sector.

In a sign that operators are fighting harder to gain the business of cash-strapped Spanish consumers, Telefonica came under renewed pressure as rival Jazztel introduced a new cheap tariff for mobile calls. Certain observers think Telefonica's margins are likely to be squeezed further, given that 20% unemployment and spending cuts are forcing customers to look for cheaper deals or to cut back on their usage.

In Spain, there are about 54.3 million mobile lines, 92.5% of which are controlled by Telefonica's Movistar, Vodafone and Orange.