Spain: more liberalized telecommunications
The process in traditionally monopolistic competition in telecommunications is long term. It can attest in Spain, where the redistribution of the client base among various operators has been rather slow. About this we will debate into the XVIII Cable and Broadband Catalonia Congress (7-9 May 2013) and the Research Group on Digital Journalism and Broadband, the UAO-CEU and CECABLE. The Broadband Society and cloud journalism require key facilities in competition.
The Market Telecommunications Commission (CMT, in its Spanish initials) has taken several steps to streamline the necessary process of liberalization. The last is the proposal of a new monitoring system to apply to commercial offers retailers from Telefónica, the incumbent and the clear market leader in the various business options except some niche redoubt. With ex ante analysis it verifies that Telefónica’s competitors can replicate the products and promotions of former monopoly, using wholesale services. This will respect the obligations of Telefónica. Inspection of the operators and the National Competition Commission (CNC) has yielded this conclusion. CMT will communicate the proposed measures to the European Commission and approve the final resolution after obtaining an opinion.
The modification of the analysis system offers of Telefónica (adopted in 2007) does not set new obligations, but yes amends. The modification includes both national consultation and notification of the project to the European Commission. Practices are respecting Draft Recommendation of non-discrimination and cost methodologies of the European Commission and approved by the Body of European Regulators for Electronic Communications (BEREC), as well as those currently used by several European regulators.
This methodology is more flexible monitoring commercial offers of Telefónica and will adapt to the level of competition in Spain in order that users can enjoy more varied deals by various operators. With the previous system (2007), competition in broadband and fixed telephony in Spain had changed to the point that Telefónica retains a market share in broadband and below 50%, although it is still high. Alternative operators reach market shares in line with those of other European countries.
The control model of CMT is also similar to other European regulators. The CMT individually analyze each of Telefónica offers the operator before the commercialized, but only for pricing plans for permanent and promotions (deals or products that are temporary and limited). Biannually, CMT will analyze aggregate temporary promotions and products that the incumbent bid in certain segments, such as double play packages (phone and broadband), triple play (broadband, fixed and television), bundled offers (fixed and phone) to residential customers and businesses and freelancers. If detected margin squeeze in the aggregate analysis, the CMT will adjust automatically, temporarily, wholesale prices affected by the offer in order to rectify the situation. It also sets a transitional period during which the CMT will continue to apply the current methodology of economic replicability in parallel with the new methodology. After that, enter into force the new analysis model Telefónica retail offers. It is a formula that affects the market opening and the granting of opportunities for new entrants.
