Banco Sabadell: According to press reports, Telefónica has reached an agreement with Masorange and Vodafone to share frequency spectrum for its mobile services in Spain. Specifically, the agreement allows them to use the 700 MHz band jointly in network deployments following the upcoming award of the Single Active Networks tender, which aims to extend 5G technology in rural areas and small towns.
Assessment: Positive news with limited impact. The agreement reached would allow operators to guarantee the minimum coverage and speed of 100 Mbps required in the Single Active Networks tender by installing fewer antennas and reducing maintenance costs. Although the direct impact is difficult to measure, this type of agreement contributes to Telefónica achieving the objective of reducing Capex intensity in the coming years to <12% Capex/sales’26 versus 14% in 2023.
