Telefonica not in favor of CNMC’s latest proposals

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Telefonica is of the view that Spain’s communications regulator CNMC should re-consider the initial proposal for changes to the fixed broadband market announced recently that calls for the former telephone monopoly to open up its next-generation network to competitors.

As per the new rules proposed by the competition watchdog CNMC, Telefonica will be required to open up its fibre optic network in all of Spain apart from nine cities with a view to ensuring competition and promoting investment in next generation access (NGA) networks.

Telefonica expressed initial concern over the proposal claiming that the proposal put to public consultation could result the opposite of the intended effect and would force operators to alter the major investment plans they have already announced. The operator said it was analysing the proposals in complete detail and would reply in due time.

“Telefonica trusts that the CNMC will finally rectify this initial proposal so that Spain can continue as a leader in the development of new electronic communications networks,” a Telefonica source told Europa Press.

The CNMC’s proposal is also calling out for Telefonica to provide wholesale access to its fibre network using a process known as ‘virtual unbundled local access’ (VULA). The regulator has proposed that Telefonica provide a wholesale offer for the business sector throughout Spain encompassing both copper lines (ADSL) and new fibre optic deployments, with prices regulated by the CNMC.

According to CNMC, the country’s operators will be allotted two months’ time to submit observations before the proposal is sent to the European Commission for approval and if all goes as per plan, the new regulation could enter into force in around seven to eight months’ time.