Telefonica pulls the fibre optic plug

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WikimediaCommons M Peinado
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.

1 COMMENT

  1. 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!

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