Diapositiva 1

1
Broadband markets in Spain CMT approach to NGA
regulation NTRA Annual Conference Sharm El
Sheikh, 29-30th April 2009
2

• Overview of broadband markets in Spain

3
Fixed Broadband vs.
Mobile Broadband

• Penetration rate 19,9
• (Source CMT)

• Penetration rate 19,6
• (CoCom BB report July 2008)

4
Growing importance of mobile BB in the Spanish
market
5
Evolution of mobile BB in the Spanish BB market

• Mobile BB lines growing (x3 since 2006)
• Coverage also growing
• from 73,3 of population (2007) to 90,3 (2008)
• Tariffs structures and prices still developing
• Different tariff plans being offered (evolving
  toward flat tariffs)
• Price still considerably higher than fixed BB
  offers

6
Fibre deployment in Spain
7

• CMT approach to regulation of NGAs

8
NGAs regulation

• Aims
• Making regulation technologically neutral
  (homogeneous for fibre /copper)
• Striking the right balance between
• CMT regulatory measures
• Imposed in the wholesale broadband markets
  (market 4 and market 5 of the EC Recommendation
  on relevant markets)
• Addressing both horizontal and vertical
  bottlenecks in the NGA deployment (FttH and FttC)

9
Market 4 Wholesale physical accessOverview of
remedies

• Existing regulation over copper is maintained
• (LLU, SLU, transparency, non discrimination,
  cost orientation, accounting separation, access
  to associated facilities)
• Although unbundling of fibre not technically
  viable
• challenges posed by NGAs are addressed
• Transition from the traditional to the NGA
  network facilitated (obligation to provide
  information about the network transformation
  guarantees on exchanges dismantling)
• Horizontal barriers reduced (access to ducts /
  dark fibre)
• Vertical barriers reduced (symmetric sharing of
  in-house wiring)

measure complementary to market 4
10
Market 4 Wholesale physical accessDuct access

• Civil works infrastructure facility difficult to
  replicate
• Telefónica network based on ducts
• Therefore.duct access imposed on Telefónica in
  order to facilitate fibre deployment by altnets
• Transparency (duct reference offer available)
• Non discrimination (quality parameters)
• Cost orientation
• Dark fibre must be available if ducts access no
  possible
• Online information system with infrastructure maps

60 to 80 of the total deployment costs
11
Sharing of in-house wiring

• In-house wiring vertical barrier for the FttH
  deployment
• Symmetric measure imposed on all operators (not
  only SMP)
• Access to the fibre network elements located
  inside or close to the building
• Reasonable prices
• Transparency

Market 5 wholesale broadband market

• Wholesale broadband access available irrespective
  of copper/fibre
• Wholesale broadband access available up to 30
  Mbps
• (it is considered that for premium offers above
  30 Mbps alternatives can make use of the
  instruments available in market 4)

12
CMT approach Overview of instruments available
to altnets

• Aim ensure that all the necessary rungs of the
  ladder of investment are available to
  alternatives for all technologies (where viable)

Own infrastr.
Access to passive infrastr.
Sub-loop unbundling
LLU
Bitstream
Optical access
FTTH
Dark fibre
Access to in-house wiring
Up to 30 Mbps
FTTB
Up to 30 Mbps
Exchange
Dark fibre
FTTN
Dark fibre
Up to 30 Mbps
COPPER
Up to 30 Mbps
Copper access
CABLE
Dark fibre
Cable network
Market 5
Market 4
13
Thank you