CMT reveals 25% cut in wholesale broadband access fees

21 Sep 2009

The Telecommunications Market Commission (CMT), Spain’s telecoms regulator, has announced that it has approved a 25% cut in the fees charged by incumbent Telefonica de Espana for access to its wholesale ADSL services. Under the ruling Telefonica will be required to lower the cost of access for both its ADSL-IP and GigADSL services, which offer national and regional wholesale broadband services respectively. The CMT claims that the decision to cut the fees stems from a lack of competition in those areas where alternative operators are not yet present, while it also argued that the cost Telefonica incurs for providing indirect access to wholesale services had lessened since the last regulator-enforced price revision. The regulator maintains that the lower access prices will allow alternative providers to compete more effectively with Telefonica in those regions where they are not present without discouraging investment in unbundled services. The cut is the third that the CMT has issued relating to wholesale broadband services since December 2006.

In addition, the regulator has also announced a reduction in the rental price of wholesale shared loop services; fees for such services will fall from EUR3 per month to EUR2.06 per month.