By Euro Weekly News Media • Published: 06 Feb 2015 • 9:36
Telefónica's headquarters on Las Tablas in Madrid
AS threatened, Telefonica is putting the brakes on its fibre optic plans.
The CNMC, Spain’s Markets and Competition regulator, wants Telefonica to share the ultra-rapid network it is currently extending throughout Spain by renting out infrastructure to its rivals.
This would be charged at a set price throughout the country, apart from towns and cities where competitors have already installed their own fibre optic networks in open competition with Telefonica. The exceptions include Madrid, Barcelona, Malaga, Sevilla and Valencia.
Telefonica opposes the CNMC’s plans, claiming that this affects the cost-effectiveness of its investment and discourages other companies from installing their own systems.
By the end of 2014, more than nine million Telefonica users had switched to fibre optic broadband and the company was intending to extend this to another 5.5 million homes during 2015. Instead it will now cut down expansion to 3.6 million households.
The slowdown will affect Telefonica clients in Madrid and Barcelona, plus their dormitory towns, as well as provincial capitals Sevilla, Malaga and Zaragoza.
Installation companies are also unhappy as Telefonica’s reaction to the CNMC’s plans could affect up to 17,000 jobs, they warned.
Share this story
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you don't already have one. Review our Privacy Policy for more information about our privacy practices.
Share your story with us by emailing newsdesk@euroweeklynews.com, by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews
Telefonica suffer from one major malaise: GREED! They have done nothing to improve their Spanish networks for decades. Telefonica clients in Guatamala even have fibre optics but not Spain!
Comments are closed.
By signing up, you will create a Euro Weekly News account if you don’t already have one. Review our Privacy Policy for more information about our privacy practices.
Download our media pack in either English or Spanish.