CNMC set to fine Movistar and Yoigo over network sharing agreement?

24 Apr 2015

Spanish mobile network operators Movistar and Yoigo are reportedly facing a fine from sector regulator the Comision Nacional de los Mercados y la Competencia (CNMC), according to Expansion over a network sharing deal dating back to mid-2013.

As noted in TeleGeography’s GlobalComms Database, a high profile deal between Yoigo and Movistar was announced in August 2013, which the pair confirmed would allow the latter to offer 4G services over Yoigo’s in-deployment LTE network. In return for granting Movistar access to its infrastructure, it was confirmed that Yoigo would meanwhile be allowed to market a converging product comprising its mobile services and Movistar’s fixed voice and broadband services. Reaction to the tie-up from the country’s other cellcos was less than favourable, with both Orange Espana and Vodafone Spain calling on the regulator to suspend the agreement.

Now, with the CNMC having been scheduled to discuss the matter at a meeting yesterday (23 April), it is understood that the regulator is minded to levy the fine on the basis that the deal hindered competition. Specifically, one element of the agreement has reportedly caused concern for the CNMC, that being a clause which requires Yoigo to seek permission from Movistar to allow mobile virtual network operators (MVNOs) to offer 4G services over the Yoigo network.