These Are Six Arguments That The PP Argued That Telefonica Not Shared Fiber

At this rate, we will have to create a ‘save me’ telecommunications if we want to keep abreast of all the soap opera surrounding the topic of sharing fiber. Recap: after months of uncertainty, the CNMC proposed last December that Telefonica would give rivals to its fiber-optic access except in nine cities, something that obviously didn’t nothing to Telefónica, which, in turn, announced its intentions to slow down its deployment if at the end the proposal came forward, and they forced him to share it.

A few days later, the PP got in all this controversy presented a motion in the Senate in which urged the CNMC not to proceed with this proposition and not force Telefónica to share fiber. Now the PP reverses, although It is not a final withdrawal: they want to find a consensus with other parties. Do arguments mentioned in the motion?

The motion of the Popular parliamentary group

Among other things, the Popular parliamentary group has been against the proposal of the CNMC force Telefónica to share fibre for the following reasons We quote verbatim (with some other grammatical correctness, since the wording is confusing in some places) of the motion tabled by the group before the Senate:

  • “The announcement of the CNMC force Telefónica to cede to the competition price regulated service of optical fiber that is unfolding throughout the national territory, can bring as a consequence to this company stop investing in Spain during the year 2015 around 800 million euros”.
  • “In addition, would other unwanted consequences, as it is the” halt which would mean the extension of the optical fiber network throughout the national territory, producing a Spain at two speeds, one that would have fiber and other associated with the copper network, which goes against the philosophy and the letter of the law [General of telecommunications]”.
  • “The spiral of undesirable consequences may affect, not only the” 30,000 jobs that currently work in Telefónica, but also to the 10,000 indirect jobs that the deployment of fiber optic was generating through subcontractors of civil works and undertakings”.
  • “Does not seem consistent with the general interests of the country, at a time of change of economic cycle and job creation, this look deprived of an important investment both direct (800 million which is deslocalizarían into other foreign markets), and indirectly (give competitive advantages to other economies with ours) by a posture which lacks economic perspective that departs from other objectives that pursues the General telecommunications law in its article 3(1), as well as the promotion of competition in the market.
  • “A disproportionate the CNMC regulatory intervention could have side effects in other private groups that they are investing heavily in future networks, such as Jazztel, Orange and Vodafone, refrain from doing so in the absence of incentives to invest resources to increase their own networks, if the telephone network is accessible to regulated prices”.
  • Finally, ask to be taken into account as specified in the General Law of telecommunications: “value properly and consider the set of objectives that pursues the law 9/2014, of 9 may, and which go beyond the promotion of competition in the markets. In particular the new objectives enumerated in the following letters of the paragraph 1 of article 3 of the law and non-existent in the former General Law on telecommunications:

(b) develop the economy and the employment of digital, promote the development of the sector of telecommunications and all the new digital services that allow the new super-fast networks, promoting social and territorial cohesion through the improvement and extension of the networks, as well as the provision of electronic communications services and the provision of the resources associated with them.

(c) to promote the deployment of networks and the provision of electronic communications services, promoting connectivity and end to end interoperability and access, under conditions of equality and non-discrimination.

(f) promote efficient investment in infrastructure including, where appropriate, the competition based on infrastructure, promoting innovation and taking due account of the risks that incur the investment companies.

The majority of arguments they agree that Telefónica He wielded in his day, warning “do not think that you point to promote an inverter stage” and that “can be altered plans for the deployment of the operators”. Alierta, in an event in which the Minister of industry, was also highlighted last January that “breakthrough in broadband and fiber infrastructures” was due to investments of Telefónica and which had produced a “very positive impact on job creation”, although he didn’t have specific statements on the proposal of the CNMC. In fact, the operator could already have in mind pass said the fact with a slowdown in its deployment of fiber.

What will end all this?

For now, as we say, the CNMC is in public consultation phase on his proposition, so this does not mean that this is final much less and the Ministry of industry, for example, still has not knowing their position. Will the pressures of the PP in any way influence? In theory it shouldn’t, since as said the President of CNMC, José María Marín, the CNMC is obliged “not to accept instructions from any public or private entity”.

Summary of what has happened so far

  • 19 Dec 2014: the CNMC proposes open Movistar fiber to its rivals, with the frontal opposition of the operator
  • 13 Jan 2015: Movistar slows down its fiber deployment before the threat of having to share it
  • 15 Jan 2015: Vodafone applauds the CNMC in fibre regulation, although regular calls the pay TV and football
  • 26 Jan 2015: Orange calls for greater regulation of the fiber to be able to replicate 10 megabytes and offer TV
  • 5 feb 2015: El PP pressuring the CNMC to help that Telefónica does not have to share their fiber
  • 11 feb 2015: the PP takes a step back, there will be no moment motion over the fiber of Movistar in the Senate