CMT eases ADSL regulations on Telefonica

13 Oct 2008

According to Reuters, Spain’s telecoms regulator, the Telecommunications Market Commission (CMT), will no longer force incumbent Telefonica to provide wholesale ADSL access at regulated prices to rival operators in some areas of the country. A spokesman for the CMT said, ‘We have deregulated ADSL in areas where we have checked that there is competition.’ Under the new rules operators will have to negotiate pricing for access directly with Telefonica, although only in areas where Telefonica has a market share of 36.5% or below; in regions where there is less competition the regulator will continue to set wholesale prices. The CMT also noted that, ‘While operators negotiate prices with Telefonica, we envisage a transitory period of a year in which (regulated) indirect access wholesale offer prices will apply.’

The CMT is also understood to have approved proposals for regulation of Telefonica’s new fibre-optic network and, despite criticism from operators including Vodafone and Orange, the incumbent will only be obliged to let rivals use their cable ducts and access points of the new network in order to roll out their own high-speed networks. The regulator has stated it will now submit the resolutions to the government, Spain’s competition commission, Brussels and the rest of the sector for comments; final regulation is expected to be ready by December.

Spain, Telefonica Espana (Movistar)