Spain's CNMC approves fixed telephony draft measure

24 Nov 2016

Spanish telecoms regulator the Comision Nacional de los Mercados y la Competencia (CNMC) has announced its approval of a draft measure relating to the retail market for access to fixed telephony (Market 1) and the wholesale market for fixed call origination (Market 2).

Following a consultation begun in July 2016, the CNMC has now confirmed its intention to maintain wholesale regulation, saying that doing so would be of particular benefit to those users taking an unbundled fixed voice service. As such, the regulator has said that obligations imposed on fixed line incumbent Telefonica Espana (Movistar) at the wholesale level will, for the most part, be maintained, particularly with regards to ensuring the operator offers wholesale line rental (WLR) at cost-oriented prices. However, the CNMC has noted that some elements of wholesale regulation are no longer required, with carrier pre-selection (CPS) regulation to be discontinued. In Market 1, meanwhile, the regulator has set out its stall to remove the few remaining obligations that are still in place, a move which will bring it in line with European Commission (EC) recommendations; as previously reported by CommsUpdate, in October 2014 the EC issued a formal decision recommending that both Market 1 and Market 2 should be deregulated in all EU countries. While the CNMC’s draft measure will mean Market 2 remains regulated, it has argued that maintaining such regulation ‘continues to be necessary to ensure a competitive retail market development’.

With the CNMC having notified the EC, the Body of European Regulators for Electronic Communications (BEREC) and other relevant local authorities of the draft measure, feedback is expected on it within one month, following which the Spanish watchdog expects to finalise the new regulation.