The Spanish government plans to grant a third digital mobile phone operators license for free. The government also announced it would will also put several PCN licenses out for tender. Both Spanish and foreign companies can opt for the third cellular license, although 75% of the operation has to be European Union controlled. The existing two licenses are held by state-owned Telefonica de Espana and Airtel SA which won its license early in 1995. Telefonica was also awarded its license at no cost but Airtel was required to pay 85bn ptas to the Spanish exchequer for the second mobile phone license. Immediately after the award of the third mobile phone license, several PCN licenses would be granted via a tender. The Development ministry was studying the granting of PCN licenses by autonomous region so that Spain’s new cable telecommunications companies, which would provide television and fixed telephony services in 1998, could also extend their activity to mobile telephony.
