Masmovil picks up 3.5GHz spectrum via Neutra buy

News

Masmovil has acquired a portfolio of spectrum across the 2.6GHz and 3.5GHz bands through the purchase of fixed wireless operator Neutra Network Services.

In a stock exchange announcement last week, Spain's fourth operator said it paid €15.5 million for 40MHz of national frequencies between 3.4GHz and 3.6GHz, and four licences in the 2.6GHz range in Madrid, Cataluña, Castilla-La Mancha and Andalucía.

The telco said it has completed the purchase and has integrated Neutra Network Services, which provides fixed wireless-based services to businesses, into its own operations, having been given the green light by Spain's Ministry of Tourism, Energy and Digital Agenda (MINETAD).

Given that Neutra Network Services is a small outfit - with fewer than 100 antennas, annual revenues of around €5 million and a "slightly positive" EBITDA figure – it is clear that the transaction is all about the spectrum.

The announcement comes less than two weeks after MINETAD launched the process of auctioning off 5G spectrum; operators have until 29th June to apply for the auction, with bidding expected to begin in mid-July.

The state plans to sell off 200MHz of 3.6-3.8GHz frequencies, divided into 40 blocks of 5MHz, each with a reserve price of €2.5 million.

Thus, the price paid by Masmovil for Neutra and its spectrum portfolio looks like a cheaper option than the upcoming auction.