Movistar Slows Down Its Deployment of Fiber to The Threat of Having to Share It

Less than a month ago that the CNMC threw the bomb in the form of proposal: forcing Movistar to give rivals access to its fiber in all Spain except in nine cities. A proposal that take out could change completely the map of telecommunications in Spain, since so far access to the fiber of Movistar by rivals was limited to 30 megs down.

And as you would expect the reaction of the old monopoly it was a total rejection of the proposal, since it would lose the competitive advantage of being the only operator with fiber to the home in many places. But the real reaction has come now, when Movistar has decided reduce your pace of deployment by 35%, as recorded today by the newspaper Expansión.

Movistar is without a doubt the most ambitious operator to deploy its own fiber network, or at least so far. In September made public objectives that were coming up to 15 million homes in 2015 and 20 million, or what is the same 80% of the Spanish population, in 2020. But at the moment the goal for this year will fall.

5.5 to 3.6 million homes by 2015

Movistar would have already given the order to reduce or slow the pace of its fiber deployment. Of the 5.5 million new homes to those who had planned to arrive this year has dropped to 3.6 million, nearly two million households that moment disappears the possibility of having the connection of fiber of Movistar will see.

Movistar rivals could also slow down their deployments

Without a doubt this slowdown is a touch of attention of the operator to the CNMC, which still has pending approve a new regularization for access to its fiber. When the regulator unveiled their intentions as speculated with the possibility of Movistar to lift the foot off the accelerator, but could also result in that his rivals would emulate him.

Having access to the fiber of Movistar, it remains to be seen under that conditions are just passing, rivals of the blue operator lose an incentive to deploy their own networks. All this with the consequent effect on employment, since only the deployment of Movistar is currently generating 10,000 indirect jobs.

The decision finally taken the CNMC It will affect and much to the deployments of networks of new generation in Spain, a country that has never known for being very balanced territorially in it comes to deployment of fixed networks.