Advisory for telecoms operators navigating Spain's demanding regulatory environment

Spain’s telecommunications sector brings together approximately 5,463 active companies and employs more than 74,359 Social Security-registered workers, with aggregate revenues of €37.6 billion that make it one of the country’s highest-value service sectors. An average gross margin of 19.3% and a five-year survival rate of 43.2% — below the broader economy average — reflect the competitive intensity of a market dominated by a handful of large operators competing on price and coverage, while the rest of the ecosystem — MVNOs, regional ISPs, tower and fibre infrastructure companies — fights to differentiate. Spain’s 17.7% share of the European market is driven by the leading position of domestic groups across Latin America and southern Europe.

The sector is experiencing structural transformation shaped by three vectors: the mass deployment of fibre optic infrastructure — Spain leads Europe with more than 85% FTTH coverage — the rollout of 5G networks across spectrum bands awarded by the Ministry of Economic Affairs, and market consolidation through mergers among infrastructure operators. All of this takes place under the supervision of the CNMC, which has significantly increased its regulatory activity in recent years, and in a European context shaped by the European Electronic Communications Code — transposed by Spain’s General Telecommunications Act, reformed in 2022 — which introduces new obligations around coverage, technology neutrality and wholesale access.

At BMC we advise national and international telecoms operators, mobile virtual network operators (MVNOs), internet service providers (ISPs), tower and fibre infrastructure companies and OTT platform providers on all tax, legal and regulatory aspects of their operations in Spain. Our services include tax planning for multinational telecoms groups with Spanish presence, transfer pricing documentation for shared network services and technology platforms, processing general authorisations and licences before the CNMC, negotiating wholesale access and interconnection agreements, and designing B2B and B2C contracts adapted to sector-specific regulations. We also represent operators in administrative proceedings and litigation before the CNMC, the AEPD and the administrative courts.

Data protection and cybersecurity represent a specific regulatory risk for the sector. Telecoms operators are classified as essential service operators under the NIS2 Directive, requiring enhanced cybersecurity measures, notification of significant incidents and periodic audits. At the same time, the processing of traffic and location data — inherent to the telecoms business model — generates particularly demanding obligations under the GDPR and the ePrivacy Directive, currently being reformed at European level. Our team combines tax, legal and regulatory expertise to deliver comprehensive coverage that supports operators from the product design phase through to managing enforcement actions before the AEPD or the CNMC.