MADRID Jan 28 Spain's telecoms watchdog has
proposed cutting the price that companies must pay to use
Telefonica's broadband network, to boost competition in
a market the former monopoly still dominates.
The measure would allow alternative providers to offer more
competitive deals and, at the same, encourage investment in
next-generation networks, CMT said on Monday.
Operators have 20 days to respond before CMT submits its
proposal to the European Commission for approval.
The CMT said it proposed cutting the rate for fibre optic
connections, which offer faster internet speeds, by 14 percent
to 20 euros ($27) per month, while the price to rent copper
wires for standard broadband services will remain 6.50 euros.
The price of "naked" broadband access, which bypasses line
rental charges because voice services are not offered, will drop
3 percent to 15.10 euros a month.
A spokesman for Telefonica said the company would
communicate its stance on the proposed changes to the regulator
as part of the consultation process.
Telefonica has just under half Spain's broadband connections
and 96 percent of the country's fibre optic market, according to
International operators Vodafone and France Telecom
offer broadband services in Spain, alongside home-grown
providers like Jazztel and ONO, which is majority owned
by U.S. private equity firms.
The regulator had said in July it would shake up broadband
services by allowing third-party access to Telefonica's fibre
optic network and encouraging other operators to invest in