The Comision Nacional de los Mercados y la Competencia (CNMC), Spain’s new ewly enlarged competition watchdog, has announced that it has initiated an investigation into the network sharing agreement between Telefonica Espana (Movistar) and Xfera Moviles, which offers services under the Yoigo banner. With the regulator saying that the deal could have an impact on competition, it has set out to examine the matter on the back of complaints that had been lodged by rival cellcos Vodafone Spain and Orange Espana. Having notified the parties involved of its intention to launch the investigation, the CNMC has said it does not expect the process to last longer than 18 months.
As previously reported by CommsUpdate, early August 2013 saw Movistar’s parent company Telefonica announce a series of agreements with Yoigo under which it would offer 4G services over the latter’s in-deployment LTE network. In return for granting Movistar access to its infrastructure, it was noted that Yoigo would be able to market a converging product comprising its own mobile services and Movistar’s fixed voice and broadband services. Further, the agreements also included the renewal of an existing national roaming deal under which Yoigo uses Movistar’s 2G and 3G network. The first tangible development stemming from the deal was forthcoming in October 2013, at which date Yoigo introduce a converged product comprising its own mobile services and Movistar’s under the Yoigo Fusion banner.