Following the merger of Orange and MasMovil, MasOrange had a total of 190 megahertz of spectrum in the 3.5 GHz band, which exceeded the spectrum cap of 140 megahertz for that band
MasOrange, Spain’s largest mobile operator as a result of the merger between local carriers Orange Spain and Masmovil, has signed an agreement with rival operator Telefónica to transfer 20 megahertz of spectrum in the 3.5 GHz band, according to local press reports.
The reports noted that both carriers have submitted a request of authorization to the Government to carry out this move; specifically, to the Secretary of State for Telecommunications and Digital Infrastructures, which is dependent on the Ministry for Digital Transformation and the Civil Service.
Following the merger of Orange and MasMovil, MasOrange had a total of 190 megahertz of spectrum in the 3.5 GHz band, which exceeded the spectrum cap of 140 megahertz for that spectrum band.
However, MasOrange had already sold 20 megahertz of spectrum in the 3.5 GHz band to Digi as part of the conditions imposed by the European Commission to authorize the merger. This means that following this recent agreement with Telefonica, MasOrange still needs to transfer 10 megahertz in the 3.5 GHz band before the end of August or beginning of September, although there is a possibility that the carrier could obtain an extension of the deadline.
If MasOrange fails to reach an agreement with a rival telco to transfer the 10 megahertz in the 3.5 GHz band, it will have to return it to the state free of charge, according to the local regulations.
MasOrange recently said that it has saved nearly 50 million euros ($54.2 million) in the first half of the year as a result of the synergies generated by the merger.
Regarding the expected synergies of the operation, the company said it is already in the execution of 30% of the total planned synergies and 70% of the expected synergies for full 2024.
The 50-50 joint venture previously said it expects to generate synergies of more than 490 million euros per year by the fourth year after the transaction’s closure.
The telco recently noted that it plans to continue with the extension of its 5G network this year with the aim of reaching 100% of nearly 750 Spanish municipalities with more than 10,000 inhabitants.
According to the company’s plans, its 5G network will reach almost 3,700 municipalities by the end this year, which compares to the 2,700 municipalities currently covered by MasOrange’s 5G network. Currently, MasOrange covers 85% of the Spanish population with its 5G network.
By the end of 2024, the telco said it plans to reach more than 2,400 municipalities with less than 5,000 with its 5G network.
The telco highlighted it currently has nearly 9,800 sites which operate in the 700 MHz band. Of the total 700 MHz nodes that the company currently has, about 5,500 are distributed in nearly 2,500 towns with less than 50,000 inhabitants. Likewise, around 600 small towns and villages with less than 1,000 people also benefit from this mobile network, the telco said.
