Telefonica Thinks to Halt Network Investments

Unhappy with CNMC’s recommendation that the fiber optic networks in Spain should be shared among service providers irrespective of its owner, Telefonica is now considering to stop further investments. The decision by Telefonica would have major implications in the telecommunication sector in Spain. CNMC intends to accelerate broadband deployment throughout the country by pushing its strategy that the main operator in any region should share its network with the rivals.

The idea of “Sharing of networks” will be an encouragement for smaller players and new entrants as they do not need to invest to build their own network. It will also help to limit the number of cables to be installed to make networks. This is an efficient way of utilizing the available network. On the other hand, thinking from the main operator’s point of view, sharing of the network is helping competitors to grow.Spanish telecommunication group Telefonica said it was considering halting investments in its Spanish fiber optic operations after the country’s antitrust watchdog CNMC recommended it should share the network in some areas.

Spanish telecom watchdog CNMC said in a statement earlier on Wednesday that in towns and cities where fewer than three companies were offering the super fast internet, the main operator should share access to its network with rivals.

CNMC has identified 34 towns and cities where network sharing is yet to be practiced.

Telefonica said it was reviewing plans to roll out the fiber optic network as it studied the watchdog’s proposal.

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