Vodafone Targets 9 Million Subscribers in Spain by July 2016

Spanish division of Vodafone said they target to increase their Fiber home-pass to more than 9 million homes in the country. The service provider’s fiber-optic deployment is continuing as per their plan. Vodafone targets to achieve this 9 million home-pass between June and July 2016.

Vodafone has currently around 1.9 million subscribers to its fiber-optic broadband services. In Spain, Vodafone’s fiber-optic network has reached around 8.57 million households on 31 March. Over the past year, Vodafone could deploy fiber optic networks to cover 1 million more households in the country.

In Spain, Vodafone has launched “Vodafone One Converged Service and currently, it has 1.1 million subscribers. Primarily due to the success of the Vodafone One Converged Service, the operator posted a 12.7 percent year-on-year fixed-line revenue rise in the last three months of 2015. Vodafone Spain has a target of 11 million home-pass by expanding its fiber-optic networks by the end of 2016. The company intends to stick to its original plan and mobilize forces to achieve the target.

Spanish fiber-optic broadband market is highly competitive with rivals engaged in price reduction to attract subscribers. The telecommunication regulator CNMC intends to bring and maintain competition in the broadband market that will eventually benefit customers. CNMC continuously update broadband status in the country in an attempt to increase awareness in public about available services and the effects of its policies.

In the Spanish telecom market, Telefonica has a clear advantage over its rivals. Having its own fiber-optic networks throughout the country and by continuously investing in the expansion of its infrastructure, Telefonica leads the fiber optic broadband market with more than 14.3 million home-pass at the end of 2015. Vodafone claims the second position with more than 8.57 million subscribers, while the rival Orange Espana stands with 7.4 million home-pass. Orange targets to achieve 10 million home pass by the end of this year.

Telecommunication regulator CNMC has been insisting on sharing fiber-optic networks in an attempt to bring equilibrium in the market. Unhappy with the decision of CNMC, the incumbent Telefonica had decided to reduce its investment in the expansion of networks by 20 percent. Telefonica thinks that investing in building networks and sharing such networks with competitors would not help its business. Investment in building fiber-optic networks needs initial capital investment and in most cases and places, the return of revenue may take years. CNMC’s intention is to bring justice to all engaged in the broadband business in the country.

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