Airtel era (1994–2001)
The company was founded in 1994 as Airtel de Comunicaciones, S.A., after a consortium won Spain's second mobile license. The original shareholders included Airtouch, British Telecom (BT), and several Spanish institutions such as Banco Santander, Central Hispano, and Acciona. Airtel began commercial operations in 1995 with an initial investment of 150 billion pesetas.[8]
Under the executive leadership of Ignacio Galán and the chairmanship of Eduardo Serra Rexach, Airtel experienced rapid growth, expanding its subscriber base from 600,000 in 1996 to 7 million by 2001.[8] Between 2000 and 2001, Vodafone Group consolidated its control over the operator by acquiring BT's 17.8% stake and buying out the remaining Spanish shareholders. The company was valued at approximately €24 billion at the time of the final buyout.[8]
In June 2001, the European Commission authorized the full acquisition of Airtel by Vodafone.[9] Following the takeover, John de Wit was appointed CEO in August 2001, and by October, the company officially rebranded as Vodafone España.[10] During this transition, the operator became the first in Spain to launch GPRS services with international roaming, establishing its position as a technological pioneer in the market.[10]
Integration into Vodafone Group (2001–2007)
Following its rebranding, Vodafone España focused on infrastructure expansion and technological leadership. In 2002, the company reached an agreement with Metro de Madrid to provide mobile coverage across the city's underground network.[11] By the end of 2004, the operator's customer base had grown to 10.9 million users, a 12.6% increase over the previous year.[12]
Under the leadership of Francisco Román, who was appointed CEO in 2003, the company pioneered the transition to 3G (UMTS) services in Spain. It was the first to market high-speed mobile data cards for personal computers and, in 2005, launched the country's first 3G flat-rate mobile internet plans.[13] In 2006, Vodafone further advanced mobile connectivity by deploying HSDPA (3.5G) technology in major Spanish cities, offering speeds up to 1.6 Mbps.[14]
During this period, the company also diversified its digital services. In 2006, it launched Vodafone live! TV, the first mobile television platform in Spain to offer digital channels such as
Convergence and acquisitions (2007–2019)
On 6 October 2007, Vodafone reached an agreement to acquire the Spanish and Italian subsidiaries of Tele2 for €775 million.[19] By 2008, the integration of Tele2 allowed the company to launch its first ADSL services and integrated office solutions.
Under the leadership of Francisco Román, who assumed the presidency of Vodafone España in 2008, the company reached 15 million customers and achieved a 30% penetration rate for 3G devices.[20] A major strategic shift occurred in 2009 when the company launched its nationwide Vodafone ADSL service, breaking traditional market dynamics by offering uniform conditions across Spain.[21] This era also saw the deployment of HSPA+ technology in major Spanish cities and the introduction of Vodafone 360, a suite of integrated internet services.[22]
By the end of 2009, the operator's customer base reached 16.9 million users.[23]
5G rollout and market challenges (2019–2023)
In January 2019, it reported, through a statement to the workers' representatives, the opening of a collective dismissal procedure "for economic, productive and organizational reasons" that would affect a maximum of 1,200 employees, on 23, 5% of the workforce.[35]
In May 2019, Vodafone España announced it would be the first operator to launch commercial 5G services in Spain, covering cities such as Madrid, Barcelona, Bilbao, Malaga, Seville and Valencia.[36]
In October 2022, Vodafone España simplified its corporate structure by integrating its low-cost subsidiary, Lowi (Vodafone Enabler España, S.L.), directly into the parent company. As a result, Lowi ceased to exist as a separate legal entity and became a commercial brand under the same legal name as Vodafone España, S.A.U.[37] On 1 October 2023, Mário Vaz was appointed as the company's executive chairman.[38]
Zegona ownership (2024–present)
In October 2023, the British investment firm Zegona Communications announced a total acquisition of Vodafone España for €5 billion, marking Vodafone Group's exit from the Spanish market after 23 years.[39] The transaction was finalized on 31 May 2024, with the company maintaining the Vodafone brand under a long-term license agreement.[40]
Following the takeover, Zegona initiated a major cost-reduction plan, which included a new collective dismissal procedure (ERE) announced in June 2024. After negotiations with labor unions, the parties agreed on the dismissal of 898 employees, representing approximately 28% of the workforce. The plan was completed in July 2024, with 667 voluntary departures and 231 forced layoffs.[41]
In early 2025, Vodafone España faced a legal and financial dispute with its wholesale partner Finetwork over significant unpaid network access fees. On 24 May 2025, Finetwork filed for pre-bankruptcy protection to shield itself from Vodafone's legal claims.[42] Following legal proceedings, Vodafone presented a restructuring plan to convert €50 million of Finetwork's debt into equity.
