10 September 2021

Telefónica awarded a contract for its Spanish 5G radio network to Nordic duo Nokia and Ericsson for the frequency bands 3.5GHz and 700MHz.

The Madrid-headquartered mobile and broadband operator said that Finnish giant Nokia and Sweden’s Ericsson would share usage of the frequency bands equally until 2026. However, there will be no changes to each network’s geographical distribution.

Spain’s Telefónica said the move would allow it to focus on improving its standalone 5G offering.

“It’s a long-term contract, which is the most appropriate scenario for Telefonica as it maintains 4G providers in place and gives us stability to roll out and develop 5G,” Telefónica’s head of operations and network Joaquin Mata said in a statement.

“In 5G, all the providers have demonstrated they’re supremely prepared... and we feel very comfortable having the best technological partners.”

The 700MHz band will be up for grabs before the 21st July, in a twice-delayed auction in which operators Orange, Telefonica, and Vodafone have all expressed interest.

The contracts include the possibility of the Scandinavian operators expanding current 4G services or migrating to 5G depending on their needs.

Meanwhile, Telefónica is spinning off its fibre business in Colombia and has agreed to sell a majority stake to KKR, shedding US$200m million off its debt pile in the process.

Earlier this year, the operator sold off fibre assets in Brazil and Chile via similar co-investment models.