Telefónica has struck an agreement to acquire 5G spectrum from the newly merged telco MásOrange in Spain.

Spanish newspaper Expansion reported this week that Telefónica signed an agreement to transfer 20 MHz of spectrum in the 3.5 GHz band.

Following the completion of Orange and MásMóvil's merger earlier this year, MásOrange was obliged to part with some spectrum to avoid exceeding spectrum allowance.

Negotiations between Telefónica and MásOrange for the spectrum assets kicked off in April.

Expansion reports that both telcos have submitted a request for the government to approve the sale of the spectrum.

The merger saw MásOrange own 190 MHz in the 3.5G Hz band, of which 110 MHz came from Orange and 80 MHz came from MásMóvil. This led the company to sell 20 MHz to MVNO Digi.

Before the agreement to add another 20 MHz, Telefónica owns 100 MHz of 3.5 GHz spectrum.

Despite the proposed sale of 20 MHz in the 3.5 GHz band, MásOrange still needs to shift 10 MHz in the band before the end of this month, as no one operator can own more than 140 MHz of spectrum in the 3.5 GHz band.

There is, however, a possibility that the carrier can extend the deadline. If it can't strike a sale for the remaining 10 MHz, the carrier will have to return it to the state free of charge.