Vodafone's Setback: It Leaves Almost Everything in Movistar's Hands, Who Can't Believe It

The deployment of the 5G network in Spain has taken an unexpected turn. All this after the Government published the final resolution of the grants for the development of this technology in rural areas.

Movistar has been the big winner. It obtained the majority of the funds allocated to extend 5G in territories with fewer than 10,000 inhabitants. On the other hand, Vodafone has been quite disadvantaged, as it renounced the grants that had initially been assigned to it.

Movistar, the Big Winner

The Government's final resolution has mainly benefited Movistar. It will receive 102.7 million euros out of the 161.3 million euros available in total for the deployment of 5G in rural areas. This amount represents 63.67% of the total subsidy.

In the provisional resolution, it had initially been allocated 83.75 million euros. But this figure has experienced a 23% increase, which represents a significant boost for the company.

Movistar will allocate these 102.7 million euros to the installation of 1,116 5G sites. This will allow coverage to reach more than 326,000 people and 4,225 miles (6,800 kilometers) of the road network in rural areas. This advancement in technological infrastructure will especially benefit those territories with less access to high-speed internet.

The Setback for Vodafone

Meanwhile, Vodafone has suffered a major setback in this call for grants for the deployment of rural 5G. The company had received a provisional allocation of 20.28 million euros. It represented a small portion of the subsidy allocated to the project.

However, it ultimately decided to withdraw from the call, renouncing the funds that had initially been granted to it. This renunciation of the grants has left it without any participation in the development of rural 5G. Therefore, it represents a significant blow to its expansion strategy in less densely populated areas.

Another beneficiary of this call has been Orange, which will receive 58.6 million euros to deploy 5G in 845 sites. Although its allocation is smaller compared to Movistar's, it is still an important part of the total available.

What Does This Distribution Mean for 5G in Spain?

The main objective of these funds is to improve 5G coverage in territories with fewer than 10,000 inhabitants. It represents a key challenge for the Government and the operators. With the deployment of this next-generation network, it is expected that more than 326,000 people in rural areas will be able to access high-speed internet.

Additionally, 4,225 miles (6,800 kilometers) of the road network will be enabled for the new technology. This will facilitate more efficient connectivity and a higher quality of service.

Although Movistar has been especially benefited by this allocation, the distribution of grants also highlights the importance of the other operators. This is the case of Orange, which continues to advance in the deployment of 5G in rural areas. However, Vodafone's withdrawal has left a gap in the process of expanding this technology.