Andorra is entering a new phase of its digital transformation. With the rollout of standalone 5G, the evolution of its data centres, the development of innovative services such as eSIM and cellular connectivity for Apple Watch, and the inauguration of the new NODE building, Andorra Telecom is strengthening its role as the country’s strategic digital infrastructure provider. In this interview, Andorra Telecom CEO Jordi Nadal discusses the sector’s key challenges and opportunities, the future of artificial intelligence, data sovereignty, and the company’s strategic priorities for the years ahead.
Interview: Irina Rybalchenko
Let’s start with Andorra Telecom’s eSIM service. How would you assess its performance since launch?
We are very pleased with the results. We have already sold 25,000 eSIMs, which is a very significant figure. The service is clearly aimed at tourists, and we see it as a complement to the roaming agreements available in neighbouring countries. Among the different plans, the three-day option is by far the most popular, while the seven-day package is also performing very well. The one-day plan, on the other hand, has generated considerably less demand.
Are you planning any further initiatives to enhance connectivity and services for tourists?
Yes. We intend to make the eSIM offering even more attractive and competitive, including, in some cases, unlimited data plans.
You are also introducing cellular connectivity for Apple Watch. What does this new feature offer?
This is an important new capability. We have been working with Apple for some time to enable Apple Watch users to integrate their mobile service directly into the watch. This requires a new technological platform, which will also open the door to many additional features.
The watch will become fully autonomous. It is particularly useful for people who practise sports. Two or three years ago, Apple Watch did not support roaming, whereas now it does. This means that, for example, you can cycle to neighboring La Seu d’Urgell wearing only your watch, make phone calls and send messages without having to carry your mobile phone.
Turning to the rollout of 5G, where does Andorra Telecom stand in the process? And how does Andorra compare with other European countries?
The deployment of 5G consists of two components. The first is the radio access network, which provides 5G coverage. The second is the 5G core, essentially the heart of the network.
All countries began by deploying the radio network. Monaco was the first European country to do so, in 2019. We completed our rollout at the end of 2021 and have continued enhancing it ever since. This is what allows users to see the 5G symbol on their phones and benefit from higher connection speeds.
The second stage involves deploying the 5G core. Most larger countries are either in the process of building it or have only recently completed it. Smaller countries (we are members of an association of small telecom operators) are following the same path. Luxembourg, for example, plans to have its 5G core operational by the end of this year, while we are working towards launching ours next year.
Once both the radio network and the core are in place, it becomes possible to unlock the full capabilities of standalone 5G: ultra-low latency, very high speeds and the ability to support extremely high device density.
Ultra-low latency is particularly valuable in industrial environments, but also in airports, ports and railway stations, where automated machinery and robots must communicate almost in real time. These are the types of applications currently driving the full deployment of standalone 5G in larger countries.
In the case of smaller countries, and Andorra in particular, we do not yet have a clear use case that makes us say: “We need standalone 5G today to take full advantage of all its capabilities.” However, deploying this technology takes approximately two and a half years. If we waited until a specific need emerged, for example, a new tourism service or another application requiring standalone 5G, we would have to tell our customers that it would take another two and a half years before we could provide it. Instead of waiting, we decided to move ahead with the deployment now.
The first feature we are almost certain to introduce is network slicing, one of the key capabilities of standalone 5G. In simple terms, it allows the network to be divided into separate virtual layers, with individual layers reserved for specific services.
For example, one layer could be dedicated exclusively to emergency services. In the event of a major incident, if the entire population attempted to make calls simultaneously, the public network could become congested because it is not designed for everyone to connect at exactly the same moment. A dedicated emergency slice, however, would continue operating normally, allowing emergency teams to communicate without interruption.
Standalone 5G is also highly valuable during large concerts and major events, where thousands of people are connected simultaneously. Andorra does not yet have many venues of this scale, but it is a need that will inevitably arise in the future.
In any case, we don’t want to fall behind. We have chosen to invest in the future, and that is why we are already deploying standalone 5G.
Can we say that today the digital economy is becoming one of the main drivers of Andorra’s economy, alongside tourism and the financial sector?
I believe that virtually everything is becoming digital, and we are an essential player in a very significant part of the economy.
In fact, it is becoming increasingly difficult to distinguish between the digital economy and the rest of the economy. Today, everyone is connected, artificial intelligence is finding its way into every sector, and we are the enablers of that transformation.
Andorra Telecom already operates three data centres, located in La Massana, La Comella and Santa Coloma. To what extent does this infrastructure meet the new demands created by artificial intelligence, automation and the growing need for data processing?
When people talk about data centres, they often refer to them as though they were all the same, but that is not the case.
Some data centres are primarily about power, cooling and physical space. Others provide the servers themselves, which customers can rent. Some operate as cloud platforms. And now we are seeing the emergence of data centres that rely mainly on GPUs rather than CPUs, because GPUs are specifically designed for artificial intelligence workloads.
There is a very strong trend in this direction because AI requires substantial computing infrastructure. As a result, significant business opportunities are emerging around the construction of very large data centres.
However, for a large-scale data centre to be commercially viable, three key conditions must be met: abundant space at the lowest possible cost, access to large amounts of electricity (also at the lowest possible cost) and highly efficient cooling systems.
When we talk about hyperscale data centres, we are talking about facilities with enormous energy requirements.
The question, then, is whether Andorra could become a suitable location for this type of infrastructure. Iceland, for example, benefits from inexpensive geothermal energy. Norway has abundant space and almost free hydroelectric power. In China, vast desert areas covered with solar panels generate gigawatts of electricity. By contrast, Andorra imports its electricity from neighbouring countries at market prices. That is our main Achilles’ heel. We also have limited land, and it is more expensive than in many other countries.
One factor that does work in our favour is the climate. In general, cooler temperatures make it easier and more efficient to cool computing equipment.
For these reasons, competing with the large data centres planned for locations such as Madrid or Zaragoza, or elsewhere in Europe, is extremely challenging.
Returning to AI-specialised data centres, what does make sense is to develop a smaller facility with artificial intelligence capabilities that enables companies to run their AI models within the country.
Because not everything is ChatGPT. Companies can develop and use their own AI models, and the infrastructure required for that is on a much smaller scale. We are not talking about building a 50 MW facility, but perhaps a 1 MW one, a data centre capable of meeting the country’s AI needs. From that perspective, establishing this type of AI-focused data centre in Andorra makes perfect sense.
A few years ago, there was a lot of discussion about the concept of the “sovereign cloud.” Today, given the dominance of major platforms such as Google, Amazon, Microsoft and Oracle, is it still possible to guarantee the data sovereignty of a country like Andorra?
Ten years ago, everyone was talking about the sovereign cloud in the sense that a country’s most sensitive data should be stored within its own territory.
But as the major hyperscalers have grown and continued to offer more and more functionalities, this has become increasingly difficult.
There was an initiative to bring an extension of a hyperscaler to Andorra, allowing a major platform to establish local infrastructure so that the country’s data could be stored there while remaining connected to its larger data centers. Ultimately, the project was abandoned because it proved to be technologically very complex, given the size of Andorra and the volume of data involved.
When you cannot physically keep the data within your own territory, it has to be stored elsewhere. The question then becomes: how do you guarantee sovereignty? The answer lies in encryption and key management. The data may be stored in external data centers, but the decryption keys remain in Andorra.
Andorra Digital has worked with hyperscalers to ensure that an Andorran institution using services such as Microsoft Azure can protect its data through a dual-encryption system.
It is like a door with two locks. One lock is controlled by the technology provider, for example, Google or Microsoft, and the other is controlled by Andorra.
If a foreign court were to request access to this data, the provider could supply its own key, but that alone would not be enough to open the door. Andorra’s key would also be required.
This is one way of guaranteeing data sovereignty: even if the data is stored outside the country, no one can access it without Andorra’s authorization.
This is a need shared by many small countries. The same applies to Gibraltar and other territories. The goal is to be able to use the world’s major technological infrastructures while maintaining control over who can access the data.
I have heard that there are investors willing to invest millions of euros in data centers in Andorra. Some argue that one of the advantages of the country could be to offer this space for other states or institutions to host their data. How do you see this possibility?
There may be opportunities to set up data centers. They do not have to be huge facilities, such as 25 megawatts. But, for me, one thing has to be very clear: they need to be well connected.
I often compare it to setting up a hotel. You can say: “Let’s set up a hotel in a very beautiful place.” But I would ask: will we fill it? If we fill it, let’s set it up. But if we build a hotel and people do not come, it will fail, because it is a very expensive investment.
The same thing happens with a data center. You can set up a perfect data center, but I think it is very important to build it knowing that you will fill it.
Because the attractiveness that Andorra can have, in terms of the price you will offer for the data center, will certainly be lower than that of other countries. If Google, with 100,000 square meters, with practically free energy, practically free land and an outside temperature of ten degrees below zero, sets up a data center, while you have to find land, buy it, pay for electricity and operate in a different climate, you will hardly be competitive in terms of price.
Therefore, it will have to be competitive for other reasons, and you have to find what this differential value is.
But with Google there is no such sovereignty. There is a geopolitical dimension here that can be very attractive…
Well, ultimately, companies operating in the country follow the country’s legislation and comply with the guidelines of the competent authority regarding the data hosted in Andorra.
Andorra must be careful not to become, for example, a refuge for a whole series of dark web pages or dark services that are currently being pursued and that say: “Let’s locate ourselves in Andorra; they will not be able to prosecute us here.”
It would not be positive if this happened. I would not like Andorra to become a refuge for websites involved in illicit activities.
Is the current regulatory framework sufficient to compete with other countries and, at the same time, protect Andorra from this type of risk?
The regulatory framework we have is a European standard.
Here, rather than competing, I believe that the regulatory framework must serve us to differentiate ourselves. Given that we cannot compete in terms of space, energy or air conditioning, trying to compete through regulation rather than through our environment would mean wanting to be different from the countries around us.
Now, if there are people who say: “I want to have the data outside the European Union because I am not comfortable in the EU,” I think we should move away from this approach, in the sense that Andorra wants to become increasingly closer to the EU. We should understand the motivation that a company may have for not wanting its data to be accessible by the EU.
The regulation that we have today already allows us to act. If there are clearly criminal websites, they can be blocked. In this sense, I think we are aligned with European standards.
A use case in which it makes sense for companies or institutions to bring their data to Andorra can certainly exist. It can be a completely lawful, appropriate and justified use case.
However, this use case must be identified. I remember that, in the past, some projects were proposed in Andorra that ultimately were not carried out.
If this project materializes, would a future private data center be a competitor of Andorra Telecom or could it be a partner?
Yes, that is a good question.
We already have a data center business that operates with customers within the country. About a dozen years ago, we tried to attract customers from outside Andorra. We did it through a partner, which no longer exists today. However, in the end, this partner was unable to bring us customers from outside Andorra. They did not find the right use case.
If a data center were established to offer the same services that we provide to our customers, it would be a problem for us, because the market is very small and there would be more suppliers competing for the same demand.
However, if a data center were created to bring services from outside the country, we would view it very positively, and we believe it could be a very interesting opportunity.
But I insist on this point: it is not about building the infrastructure. It is about finding the customers for whom it makes sense to use that infrastructure.
What is Andorra’s main competitive advantage compared with other countries that are also seeking to attract artificial intelligence infrastructures?
We do not have a source of free energy, nor do we have abundant available space. It is true that our climate is cold, but there are other places where it is even colder. Perhaps the only competitive advantage we can develop is that we are a particular country – a small country, outside many jurisdictions, with a very specific situation – that can be very dynamic and attractive in certain areas.
Some companies I have spoken with that are looking for data center space place a great deal of importance on price, for example. And it is very difficult for us to compete globally on price: against the sun of Dubai, the hydroelectric resources of Norway or the geothermal energy of Iceland.
If an investor wants to establish a data center, finds the necessary land and the energy figures are viable, there is no obstacle preventing the project from moving forward. Under these conditions, there could be room for a large artificial intelligence center dedicated to model training.
Could this be a good model for the country? Yes, it could. However, data centers are also viewed critically because they are major consumers of energy and water and are therefore associated with environmental concerns.
There is even a trend suggesting that the most developed countries try to locate data centers in developing countries, seeing them as a source of income while paying less attention to the resources they consume.
Large data centers have both a positive and a negative image. But if I had to weigh the pros and cons, I believe it can be beneficial.
Now let’s talk about cybersecurity and the protection of citizens’ and companies’ data. What is Andorra Telecom doing to strengthen this protection?
As a national operator, we have a first line of defense in terms of cybersecurity that must be taken into account.
We are very active in blocking attacks known as denial-of-service attacks (DDoS). This is a shield that we have implemented and in which we invest significant resources.
But there are many other ways to cause harm.
This is why we are also focusing on raising awareness. We have a subsidiary called Diquital, and we are very active in this area.
Through this subsidiary, we assess whether companies are adequately protected, provide advice and help them improve their security. The Andorran Cybersecurity Agency also carries out extensive awareness-raising activities and evaluates the level of protection that companies have against cybersecurity attacks.
Every company must be aware that, nowadays, taking basic precautions to protect itself is essential.
What role should the new NODE building play within the country’s digital transformation strategy? Could it also become a meeting point for technology companies and start-ups?
There will not be a technology business park in NODE, as it would not be suitable for that purpose. However, we still believe that the building will have a significant impact on Andorra’s future, not only in the field of digital transformation but also in many other areas.
In fact, something quite new that I would like to mention is that, together with ARI, we have created a scholarship programme so that a student who has completed a university degree can develop a project analysing the impact of the building on mobility, the economy, society, urban planning and other areas.
The selection committee was established recently. We received quite a few applications, around ten, and we selected the student who will spend one year working on the project between ADI, Andorra Telecom and MIT, one of the most prestigious universities in the United States. The student will spend part of the year in the United States and the rest of the year with ADI in Andorra.
The objective is to assess the impact that the building has had across different areas.
In which areas do you think it will have the greatest impact?
The Andorra Telecom store alone, which was inaugurated on July 28, will already have a significant impact, as it will bring around 100,000 people a year to this area.
The section of Avenguda Meritxell is very important. Historically, there was the Andorra Telecom store, which was closed on Saturday afternoons and Sundays. Now there will be a museum space that will remain open. The first floor is also very important.
It will host the Digital Wellbeing and Competence Center, a space designed to help citizens acquire digital skills: learning how to use the digital wallet, banking applications and other digital services, as well as receiving training.
For some people, these tools are easy to use, but for older generations they can be more challenging.
The space can help older people make use of all the digital tools available today, while also allowing younger generations to engage with areas such as robotics.
There will also be activities focused on digital wellbeing and awareness. Not everything will take place in person; we will also use digital channels. However, this space will allow us to organise activities addressing the negative aspects associated with the internet and social networks, while also helping young people develop greater awareness of these issues.
Let’s finish with the strategy. Andorra Telecom is not just a telecommunications operator, but a digital infrastructure company for the country. What are the three main strategic directions for the next five years?
I would summarize them in three areas.
The first is to have a solid and modern telecommunications infrastructure. This involves completing the deployment of 5G nationwide, continuing to evolve fiber technology with FTTR (Fiber to the Room), which will improve Wi-Fi coverage inside homes, and progressing with the gradual shutdown of 3G and, later, 2G.
These are old and inefficient technologies that we will gradually replace with more modern networks. However, before doing so, we will make the necessary improvements to ensure good coverage.
The second area is to gain customer trust. This means providing a high-quality service, reducing incidents and resolving them quickly when they occur.
We are also working on cybersecurity projects and new services for the country, such as agreements with Google and Apple that will allow citizens, in areas without mobile coverage, to use satellite connectivity to contact emergency services, for example, in risky situations in mountain areas.
It is not only a question of infrastructure, but also of the services we provide on top of that infrastructure.
The third area is sustainability, understood in several ways.
First, economic sustainability: we want to continue being a company capable of investing in future technologies such as 6G, and this requires maintaining financial capacity. If prices are to decrease, we will have to find new sources of revenue.
But we also talk about digital sustainability. We are aware that the internet brings enormous benefits to citizens and companies, but it can also create risks, such as addiction to social networks, online gaming or other inappropriate uses.
That is why we want to promote digital wellbeing initiatives that help reduce these negative effects and encourage responsible use of technology.
