CNMC fines Movistar over handling of LLU technical complaints

5 Jan 2017

Telefonica Espana, which offers its services under the Movistar banner, has been fined by local telecoms regulator the the National Commission for Markets and Competition (Comision Nacional de los Mercados y la Competencia, CNMC) over what the latter has referred to as a ‘serious infringement’ related to its handling of complaints related to its local loop unbundled (LLU) services.

In a press release the CNMC confirmed it was fining Movistar EUR5 million (USD5.2 million) after determining that between 1 January 2014 and 31 October 2015 the operator had incorrectly labelled a number of technical complaints from alternative providers using its LLU network as ‘false alarms’, while the fixed line incumbent subsequently levied financial penalties on these operators. With the CNMC ruling that Movistar had failed to investigate these complaints fully, it has argued that between 53.8% and 78.2% of those declared as false alarms might have, in fact, been incorrectly designated. Such a situation, the CNCM noted, may have caused losses for alternative operators totalling several million euros, while also impacting the image of these companies. Movistar has the right to appeal the fine, though it must do so within two months.