In early 2023, the Ministry of Economic Affairs and Digital Transformation initiated the UNICO Rural Demand program. Its goal was ambitious: connect 1.3 million homes and businesses in rural Spain to the internet through Hispasat\u2019s satellite services. However, two and a half years later, the outcome has been overshadowed by disappointment and underachievement. What went wrong?<\/p>\n
The UNICO Rural Demand program aimed to provide a robust internet connection\u2014100 Mbps at a cost of \u20ac35 per month\u2014to regions lacking access to networks of at least 50 Mbps. With a substantial budget of \u20ac76.3 million in aid, it seemed like a promising solution for rural connectivity issues in Spain.<\/p>\n
The initial vision was to ensure that by 2025, the entire population of Spain would have access to reliable 100 Mbps internet. However, the actual implementation has fallen drastically short. After almost three years, only 11,486 installations have been completed, rendering the initiative a striking failure against its lofty aspirations.<\/p>\n
The government awarded Hispasat\u2014a company recently acquired by Indra\u2014the contract to deliver the wholesale service. With 42 companies designated for distribution and installation, optimism was high. However, it soon became apparent that significant problems were brewing. Eurona, which was supposed to handle a majority of installations, filed for bankruptcy and divested its Spanish assets, severely disrupting the service rollout.<\/p>\n
While the program’s intentions were noble, large telecommunications companies have not stepped up as expected. They preferred to push their fiber or rural 5G solutions over Hispasat’s service, knowing that profitability was limited. Major player Telef\u00f3nica has contributed only 10% of registrations, while small local firms like Celver and Bluetel have managed to register twice that number.<\/p>\n
Adding to Hispasat\u2019s troubles is the presence of Starlink, a satellite internet service known for its superior technology and pricing. For just \u20ac29 a month, users can access up to 300 Mbps with significantly lower latency than Hispasat\u2019s offerings. With Hispasat\u2019s latency nearing 600 ms, activities like video conferencing and online gaming are nearly impossible, making Starlink a far more attractive option.<\/p>\n
The program has faced such severe setbacks that Hispasat has had to return \u20ac22 million of the public aid disbursed. Of the initial funding, \u20ac36 million was allocated for registration costs while the remaining \u20ac40.3 million was earmarked for marketing efforts. Dishearteningly, a mere 11,486 installations were executed out of 128,120 eligibility checks.<\/p>\n
The failure of UNICO Rural Demand compounds issues faced by other initiatives, including the UNICO 5G Active Networks program. Prevailing obstacles have marred these efforts to extend internet infrastructure in rural locales. In 2024, this initiative plans to allocate \u20ac161.3 million to enhance 5G coverage in smaller towns, potentially enabling 326,000 residents to access better connectivity. <\/p>\n
In conclusion, the vision of Hispasat as the “Spanish Starlink” has met with disheartening results, underscoring the challenges of providing reliable internet to underserved communities. As projects evolve, lessons must be learned to avoid repeating past mistakes and to foster genuine connectivity changes across rural Spain.<\/p>\n