Telefónica to lose Spain's universal telecom service role in 2027

Telefónica will stop being the operator obliged to provide Spain's universal telecommunications service from 1 January 2027. A draft order from the Ministry for Digital Transformation and Civil Service sets out the change. The text went to public consultation on 7 October 2026 and closes 28 years of history.

The universal service began in Spain in December 1998, with the liberalisation of the telecoms market, and Telefónica has carried it ever since. It was originally built around the fixed landline, but since 1 January 2012 it has also included a 1 Mbps internet connection. That broadband element never proved popular, partly because of download limits and a speed that stayed at 1 Mbps until 2022. That year the General Telecommunications Law raised the minimum to 10 Mbps, the figure that still applies.

Why the Ministry is stepping back

The draft order argues that fibre, cable, fixed wireless access and satellite form "an extensive range of technologies" that confirms "the universalisation of very high capacity networks across the national territory". It also highlights an "excellent level of coverage" for fibre and 5G, plus progress in satellite networks. Relying on article 35.6 of the General Telecommunications Law, the Ministry concludes that fixed telephony and broadband are "guaranteed by normal conditions of commercial operation". It will therefore not renew Telefónica when its designation ends on 31 December 2026.

What changes for users

After that date there will be no single designated operator. Each company will have to offer the universal service within the area where it provides coverage, according to the draft order.

The conditions are set by a draft regulation that the Ministry put to public consultation on 22 April 2026 and which is still being processed. If it passes as written, individuals, microenterprises, SMEs and non-profit organisations will be able to demand 100 Mbps download, 5 Mbps upload and a maximum average latency of 690 milliseconds, plus Real-Time Text (RTT) on calls.

The draft regulation would also require all operators to give people receiving the Minimum Living Income (Ingreso Mínimo Vital) a discount of at least 25% on the commercial price, both on sign-up and on the monthly fee.