CNMC sets final price for last mile access to Telefonica Espana’s fibre infrastructure

24 Jun 2014

Spanish telecoms regulator the Comision Nacional de los Mercados y la Competencia (CNMC) has set the final prices which both Vodafone Spain and Orange Espana will pay for accessing the last mile of fixed line incumbent Telefonica Espana’s fibre network. In announcing its decision, the watchdog has confirmed that both of the alterative operators will pay the same rate that rival Jazztel does. Such a pricing structure, the CNMC has claimed, will mean an average reduction of 34% compared to the rates that had initially been proposed by Telefonica, and the new pricing structure will be applied retroactively.

With Telefonica and Jazztel having signed a vertical infrastructure access agreement for the shared deployment of fibre-to-the-home (FTTH) networks in October 2012, the following March saw Orange and Vodafone strike a deal to invest up to EUR1 billion (USD1.3 billion) on the construction of a joint fibre-optic infrastructure which would use the last mile of the Telefonica network. To facilitate planning and deployment, in July 2013 the regulator made a decision on preliminary pricing for access, at that date saying that provisional charges it had established were between 18% and 24% lower than the price initially offered by Telefonica to its rivals. As per its most recent ruling, the CNMC noted that, a resolution dated 18 June 2014 has fixed prices in line with those charged by Telefonica to Jazztel as such rates were ‘reasonable and should also apply for access to these facilities by Orange and Vodafone’.