CMT dilutes Telefonica network obligations
January 27, 2009
From David Del Valle in Madrid
Spain’s Telecommunications Market Commission (CMT) has freed Telefonica from the obligation of sharing its network with other operators for speeds over 30Mbps. Below that speed, the company will have to offer rivals a wholesale service, whether offered via the copper wire network or its new fibre optic network. It must also give rivals access to infrastructure like ducts and channels on its new fibre-optic networks to allow them to roll out their own new networks.
However, Telefonica does not have to sell a wholesale internet service to rivals for speeds above 30 Mbps. The new fibre nets which could be as fast as 100 Mbps using the new technology, according to the CMT.
The CMT’s decision comes despite criticism of its proposals by the European Commission. Rival operators are also critical of the new regulation, which they said will reduce competition. Currently, Telefonica still has 57 per cent market share in broadband in Spain, not including its wholesale internet business.