Following the announcement earlier this month that three of Spain’s largest telcos – Telefonica Espana, Vodafone Spain and Orange Espana – had signed an agreement under which they will share vertical fibre-optic infrastructures in buildings, Spain’s Comision del Mercado de las Telecomunicacinoes (CMT) has reached a decision on preliminary pricing. In announcing its plans, the regulator has claimed that the provisional prices it has established are between 18% and 24% lower than the price initially offered by Telefonica to its rivals, with the CMT saying that this will mean a saving of between EUR8 million and EUR14 million (USD10.4 million-USD18.3 million) for each operator.
As previously reported by CommsUpdate, in October 2013 Telefonica and Jazz Telecom (Jazztel) signed a vertical infrastructure access agreement for the shared deployment of fibre-to-the-home (FTTH) networks. With Jazztel claiming that the deal represented the start of its fibre deployment via co-investment, it said at the time that the agreement set out ‘reciprocal conditions under which both parties will deploy and access the vertical infrastructure defined in the Agreement’. In making its pricing decision, the CMT noted that it considered the prices agreed by Jazztel and Telefonica as reference point both for the costs of access to vertical infrastructure and costs for the provision of fibre connectivity to end-users.
Highlighting the fact that those companies deploying new infrastructure face greater risks, the regulator has, however, argued that higher pricing should apply to those only looking to access fibre that has already been installed by another operator. As such, the CMT has said that the prices Vodafone and Orange will pay for access to Telefonica’s fibre infrastructure will be just over 15% higher than the price agreed between Jazztel and Telefonica; while the latter pair are planning to roll out new infrastructure, the regulator noted that there have been no time-specific commitments between the other operators regarding similar plans yet.