CNMC proposes reduced price cap for Telefonica’s wholesale fibre service

2 Jan 2018

Spain’s National Commission for Markets and Competition (Comision Nacional de los Mercados y la Competencia, CNMC) has approved the calculation methodology used to determine the wholesale prices of Telefonica de Esapana’s fibre-optic services. In a press release the regulator confirmed that as a result it is now proposing a maximum wholesale price of EUR16.38 (USD19.66) per month for Telefonica’s wholesale fibre offering, lower than the EUR17.52 it had initially proposed in a previous public consultation, and representing an almost 18% reduction from the current cap of EUR19.93. According to the CNMC, it has now notified both the EC and the relevant local ministries of its provisional decision, with these bodies now having one month to make comments on the plans. Following this period, the CNMC expects to issue a final ruling regarding the matter.

Under existing wholesale regulations, Telefonica de Espana, which offers services under the Movistar banner, is required to offer access to alternative operators to its fibre-optic infrastructure in all but the 66 most competitive municipalities in Spain. Further, while the existing legislation does allow the telco to set its own wholesale prices, its charges must allow alternative operators to offer retail products with ‘similar characteristics and prices’ to those marketed by Movistar itself.