Permissive regulator encourages Telefonica’s four-play

21 Sep 2012

Spanish telecoms regulator the Comision del Mercado de las Telecomunicacinoes (CMT) has given its permission for Telefonica de Espana (Movistar) to commercially launch two quadruple-play packages under the ‘Movistar Fusion’ banner. The two discounted bundles include flat-rate fixed line voice and 10Mbps fixed broadband connections, cellular (mobile voice and mobile broadband), plus a pay-TV channel package. According to its analysis, the CMT believes the offers can be replicated by other operators using wholesale services currently available. After checking all ‘ex ante’ regulatory conditions as per Telefonica’s significant market power (SMP) operator status, the CMT said it has no objection to the telco proceeding with marketing Movistar Fusion, whilst adding that it will continue to monitor the packaged offers. If subsequent reviews conclude that the offers are not replicable by competitors, the CMT may modify the terms of the relevant wholesale services. Meanwhile, the CMT has yet to make a final decision on two further proposed Telefonica packages that include the same four services as the above but include fibre-optic connections (at access speeds of 100Mbps) under the name ‘Fusion Fiber Movistar’.

The Movistar Fusion quad-play range is scheduled for a full commercial launch on 1 October for customers signing up for twelve-month contracts. The new services have come under attack from rivals including Vodafone and Orange, which claimed that Telefonica’s offers cannot be replicated by competitors and urged the CMT to block its plans.

Spain, Telefonica Espana (Movistar), Telefonica Moviles Espana (Movistar)