TELEFONICA MOBILE TELEPHONY II

Telefónica’s investments include the geographic and capacity expansion of its existing mobile broadband UMTS network in Spain, as well as the extension of its GSM network using the 900 MHz frequency (E-GSM), mainly in rural areas.

The project fits well within two of the EU priorities: supporting regional development and promoting innovation investments for the development of the Information Society.

On one hand, 76% of the Spanish territory consists of convergence areas under the new Convergence and Competitiveness Objectives 2007-2013 set up by the Commission. Having the project of a nation wide coverage, its regional interest is thus clear as further provision of cost-efficient broadband mobile telecom infrastructure will help to encourage economic development. In addition, the E-GSM part of the project has a particularly dedicated coverage of rural areas and large transport infrastructures deriving from the obligations set up by the Spanish telecom regulator CMT for using this frequency spectrum.

On the other hand  the project concerns the expansion of a last generation broadband mobile telephony network, which is in line with Community policy and Council recommendations for the development of the Information Society as well as with the Bank’s RDI priority initiative.

Investments in mobile telecom projects (including base stations, transmission systems and OSS) do not fall under Annex I or II of Directive 85/337 EC as amended by Directives 97/11/EC and 2003/35 EC. GSM/UMTS systems have limited environmental effects, apart from the visual impact of base station towers. Other impacts can be mitigated by appropriate construction and operation measures. Potential health risks from electromagnetic radiation are under study at an international level.

The promoter has an Environmental Management System to identify activities that impact on the environment and promote corrective actions under a specific environmental policy. Full environmental details will be assessed during appraisal, including the possible impacts on protected flora and fauna (Habitats 92/43/EEC and Birds 79/409/EEC Directives).

The promoter is a private company not operating in the Utilities sector. Spain also falls under the latest communication 2004/C115/03. The promoter is therefore neither covered by the EU Directives 93/38/EEC nor by the EU Directive 2004/17/EEC on procurement. The effectively used procurement procedures will be assessed during appraisal.