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Since 2010, universal broadband has ensured internet access in every corner of Spain, providing a minimum and affordable connection for residents in areas with limited coverage. However, the emergence of new technological alternatives, such as Starlink’s satellite internet services, has called into question the continuation of this public service.
An Essential Service for Rural Areas
Universal broadband was created at a time when quality connectivity was a privilege for large cities. In rural or hard-to-reach areas, internet coverage was limited, and in many cases, Telefónica was the only available option. Therefore, the government launched universal broadband, allowing any citizen to access a minimum connection of 1 Mbps, which was later expanded to 10 Mbps in 2020.
To achieve this goal, Telefónica was designated as the company responsible for providing this service, partially financed by other operators through mandatory contributions. However, the recent increase in speed requirements and the need to reach more areas have raised costs, making this service less profitable for the company.
Alternatives Challenging the Need for a Universal Service
Today, universal broadband seems to be losing relevance due to the availability of alternative internet services. Technologies like 4G and 5G have improved connectivity in rural areas through wireless solutions, while Starlink, SpaceX’s satellite internet service, has gained popularity as a viable option in remote areas. Additionally, the Unique Rural Demand program, driven by the government, allows places without fiber coverage to access connections of up to 200 Mbps through geostationary satellites.
These advances have led the Ministry of Digital Transformation to consider the elimination of universal broadband, believing that the market already provides sufficient alternatives to meet the connectivity needs of the population. In fact, the recent public consultation launched by the ministry indicates that there are various options for fixed, wireless, and satellite communications that can compete freely and ensure adequate service in almost any part of the country.
A Change That Could Materialize in 2025
With the universal broadband contract ending on December 31, 2024, the Ministry has announced its intention not to renew it beyond this date. The decision is based on the premise that private operators now have sufficiently advanced infrastructure to meet internet demand throughout the territory without the need for public intervention. If the elimination of universal broadband is confirmed, Spain may rely entirely on private initiatives to ensure the connectivity of its population.
For users in rural areas, the elimination of this public service could mean a transition to solutions like Starlink. However, some experts point out that reliance on private and satellite services could expose users to potential price fluctuations and varying service conditions, as has occurred in other sectors. Additionally, some participants in the public consultation have expressed concerns about the lack of regulation on the prices of these alternative services and their economic accessibility for all citizens.
Perspectives and Challenges
The end of universal broadband could represent a step forward in terms of efficiency and competitiveness, allowing the state to focus its resources on other areas. However, it also poses challenges for the less profitable areas for operators, where connectivity costs may rise due to dependence on solutions like Starlink or mobile networks.
With a market that has shown great capacity to expand connectivity in Spain, the potential end of universal broadband seems a logical step toward a telecommunications model based on competition and private technological options. But the question of whether all citizens, especially in rural areas, will be able to access quality services at fair prices still remains.
Source: Banda Ancha
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