Spain Starts Wireless-Spectrum Sale to Raise $2.9 Billion to Trim Deficit

Spain kicks off its first wireless- spectrum auction June 29, a sale aimed at raising 2 billion euros ($2.9 billion) as the government races to rein in the euro area’s third-largest budget deficit.

Telefonica, Vodafone Group, and France Telecom are among 11 phone companies participating in the auction of 270 megahertz for mobile services. Operators will bid for 58 blocks in the 800-MHz, 900-MHz and 2.6-gigahertz frequency bands. “This will be very significant for Spain’s aim to meet its deficit target at the end of the year,” said Jose Carlos Diez, chief economist at Intermoney Valores in Madrid. “It will also be a good booster for country’s competitiveness so that it’s not left behind compared with other European counterparts.” Final results of the auction, which starts at noon Madrid time, will be known in 10 to 15 days. The Madrid-based ministry will post daily results on its website, indicating the price and the blocks auctioned, without providing the name of the operators. The auction is aimed at boosting competition, including helping reduce prices and increasing quality, by giving smaller operators more access to mobile-phone frequencies, the ministry said in April.