CNMC approves Telefónica wholesale regulations

CNMC approves Telefónica wholesale regulations

Comision Nacional de los Mercados y la Competencia (CNMC) has approved new regulations for the wholesale fibre market, applying a 40% reduction to tariffs payable by Telefónica’s rivals to the incumbent.

The new wholesale service, called NEBA, was set out at the end of last year and sees Telefónica offer virtual access to its fibre network across all of Spain, barring 66 pre-determined cities which the regulator declared as already competitive.

This covers 65% of the Spanish population, with Telefónica offering its rivals the maximum speed it has available, currently sat at 300Mbps, according to CNMC.

The rules will cause a significant reduction in the cost for capacity, according to the regulator, which it hopes will be reflected in better offers being made to end users.

By offering indirect access, Telefónica’s rivals will not be required to install equipment on each branch of the carrier’s network, but at a small number of points (one per province) instead.

CNMC said: “The wholesale regulation of broadband markets, approved last year, allows, among other aspects, the access of other operators to Telefónica's fibre optic network in areas where there is not enough competition in this type of networks.

“In comparison with direct access, alternative operators must undertake smaller investments to access regulated wholesale services; However, the ability to provide differentiated services in quality and price of Telefónica's offers is reduced.”

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