Jazztel considering bid in Spanish spectrum auction?

1 Jun 2011

Alternative Spanish telecoms operator Jazz Telecom (Jazztel) is understood to be mulling over whether to participate in the country’s ongoing sale process for mobile spectrum, Reuters reports, citing comments from the telco’s CEO. According to the report Jose Miguel Garcia, Jazztel’s chief executive, noted: ‘The mobile spectrum could be an opportunity for us.’ The revelation comes after the government announced in February 2011 that it expected its previously announced sale of spectrum across a number of bands – some suitable for 4G Long Term Evolution (LTE) services – to raise between EUR1.5 billion (USD1.83 billion) and EUR2 billion. In addition, the state claims that the sale of frequencies in total will require investment of EUR1.2 billion by telecoms operators and will lead to the creation of some 40,000 jobs. According to TeleGeography’s GlobalComms Database, Jazztel already offers mobile services, albeit as a mobile virtual network operator (MVNO). The telco received a virtual operator concession in May 2005, and launched commercial services in June 2008, piggybacking on Orange Espana’s network; by the end of March 2011 Jazztel had signed up 66,976 MVNO subscribers.

As previously reported by CommsUpdate, the Spanish Ministry of Industry earlier this week revealed that Orange Espana parent company France Telecom and Sweden’s TeliaSonera were the only two bidders for the first batch of new mobile spectrum that is being made available as part of a raft of frequency sales due to be held this year. The ministry is now expected to publish a list of prequalified bidders sometime this month for the next spectrum auction, which will take place in July 2011.

Spain, Jazztel