Liberalize the wholesale access market for fixed telephones, which is the latest proposal from the CNMC

Telefónica will be freed from providing wholesale access to fixed telephones to other operators

The Spanish operators market is regulated by the National Commission for Markets and Competition (CNMC). The decisions of the General Authority determine its course, as is the case with the approval of the purchase of Vodafone Spain by Zigona. It has recently proposed liberalizing the wholesale landline access market, Something that would directly affect Telefónicasince its obligation to provide wholesale access to fixed telephones to other operators will cease.

Why is regulation no longer necessary?

Operators who are unable to provide fixed line service to their customers must approach Telefónica to do so. They are obligated to provide the service, clearly under certain conditions. It provides access to the operator, on a wholesale basis, and the latter to customers. However, this commitment may end soon.

As detailed by the CNMC in the proposal statementChanges in the number of landline users may terminate this liability. every-time Fewer people are contracting with landlines independently (1P lines), i.e. without Internet access; In fact, only these operators provide this service. Meanwhile, every time More people have fixed voice lines next to the Internet.

Independent static voice lines decrease

Operators who provide fixed bundled fiber services mainly use fiber networks, either from their own access operations or from wholesale services, such as NEBA or NEBA local fibre. If they want to offer P1 lines, they use their own mobile networks, using a method called fixed wireless access. All this tells us that Entry barriers to the wholesale market for accessing and establishing fixed networks are no longer a differentiating factor.

Moreover, the National Center of Meteorology highlights this Retail fixed telephone services “provided under competitive conditions”. The report indicates that Telefónica's market share has declined from 46.9% to 41.9% from 2018 to 2022. In short, this competition will remain unregulated.

The China National Meteorological Commission has proposed market liberalization, but this measure must be accepted. This proposal will undergo a one-month public consultation process, where organizations, operators or sector associations, among others, will give their opinion. After approval, Telefónica's liabilities could be lifted within six months.

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