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cities where Telefónica will not be obliged to share fiber, although it will continue to do so

The CNMC has launched a public consultation on the regulation of wholesale broadband markets after the last review, which took place in 2016. At the moment, it is only a consultation and if it becomes a standard, we will have to wait another year for what Telefónica has to assume its new obligations, in 2022.

The regulation of the wholesale market seeks a balance between guaranteeing effective competition and promoting investment in new generation networks, depending on the level of competition that exists in the different areas of the national territory. In her, Telefónica is obliged to give wholesale access to its fiber network, but only to a part of the population, where there are fewer NGA networks deployed.

75% of the population will live in a competitive area

Specifically, the scale was established for municipalities where there are deployed at least three fiber networks with a minimum coverage of 20%, and also that Telefónica’s share in the retail market was less than 50%. It is what the CNMC calls competitive areas, and after the update after the last review, it would pass from 66 to 592 municipalities.

Despite the increase in competitive areas, Vodafone, Orange, Yoigo, MásMóvil or Lowi, among others, will be able to continue accessing Telefónica’s fiber where they do not have their own coverage

In this competitive area, the CNMC proposes that Telefónica maintain its obligations of access to the civil works infrastructure, which allows alternative operators make use of the conduits and poles of the Telefónica network, so that they can deploy its fiber optic networks from Telefónica switchboards to the homes of end users.

The list with the nearly 600 municipalities that for the moment would become part of the competitive zones, can be seen in the excel shared by the CNMC. However, as happened in the previous regulation, it is likely that the number of competitive municipalities will eventually be increased, due to the time that passes from the consultation until the new measures are finally accepted, and during which the operators they continue to install fiber, complying with the stipulated scale.

The regulation does not affect private agreements reached with other operators

In the remaining 25% of the population, which is divided into 7,539 municipalities, Telefónica will have to continue providing wholesale services fiber, ADSL and copper to its rivals, with regulated prices. Although those prices are of little use.

Because without CNMC in between, and despite the concern initially shown by Telefónica when at the end of 2014 the obligations to open its fiber to third parties began to be established, the teleco reached private agreements with Vodafone, Orange, MásMóvil and Virgin telco so that they could access the Movistar deployment. So regulation, did not affect these agreements, theoretically more advantageous.

More information | CNMC.

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From 66 to 600: the cities where Telefónica will not be obliged to share fiber, although it will continue to do so