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Telefónica’s 20% cut in FTTH investments

The CNMC’s decision to oblige Telefónica to share its FTTH networks at regulated prices with its competitors Vodafone and Orange across Spain will lead the dominant telco to cut by 20 per cent its FTTH investments and concentrate on those 66 cities out of the legal obligation.

The watchdog CNMC has stated that in 66 cities in the country Telefónica will not be obliged to share its network as competition is guaranteed since 20 per cent of the population in those places are covered by three operators. As a result, Telefónica will concentrate its investments in these cities and not in others where it has to share the infrastructure with its competitors.

For this year, Telefónica will pass with FTTH around 2.4 million homes at a pace of 200,000 units a month ending 2016 with 16.2 million passed homes. In 2015, Telefónica reached 13.8 million against Vodafone’s 8.4 million and Orange’s 6.8 million.

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