MasOrange needs to get rid of 30 MHz as part of the conditions imposed by regulators to approve the merger

Spanish telco Telefónica would be interested in acquiring 30 megahertz in the 3.5 GHz band from local operator MasOrange, Spain’s largest mobile operator as a result of the merger between local carriers Orange Spain and Masmovil, local newspaper Expansion reported.

MasOrange needs to get rid of 30 MHz as part of the conditions imposed by regulators to approve the merger. The European Commission had imposed certain conditionsmerge between MasMovil and Orange. One of them was that the new entity should not have more than 140 megahertz in the 3.5 GHz band. The pair agreed to sell 20 megahertz to Digi, bringing their total amount of 3.5 GHz spectrum down to 170 MHz. MasOrange now plan to offload another 30 megahertz, according to the report.

Last month, the Council of Ministers of Spain gave the approval for the Orange-Masmovil merger “with specific commitments and conditions”, including the implementation of an “ambitious industrial plan”. Spanish government approval for a transfer of frequencies was the final clearance required for the Orange-Masmovil merger after the European Commission (EC) ratified the transaction in March.

According to Expansión, Telefonica is negotiating the purchase of this spectrum. Telefonica currently has 100 megahertz of spectrum in the 3.5 GHz band, but with the potential acquisition of these new frequencies it would own a total of 130 megahertz, staying close to MasOrange. Behind it would be Vodafone, with 90 megahertz, and Digi, with 20 megahertz.

MasOrange has five months to get rid of the frequencies in the 3.5 GHz band, although the deadline could be extended.

MasOrange recently confirmed it plans to invest 4 billion euros ($4.31 billion) in the European country within the next three years.

The new entity said that the investment will be chiefly oriented for the deployment of 5G and fiber optic networks as well as new services.

The 50-50 joint venture, which currently has over 30 million mobile customers, said it expects to generate synergies of more than 490 million euros per year by the fourth year of the transaction’s closure.

The telco also noted it aims to increase its 5G coverage to above 90% of the Spanish population, adding that it will cover with fiber optics up to 6 million additional homes and more than 1,700 new municipalities across Spain.

The new JV was initially announced in July 2022.