They are designed to ensure access to physical infrastructure access is on reasonable terms
An approach similar to that in Portugal: The Spanish regulator, the CNMC, issued new guidelines this week on how it will resolve disputes that may arise when operators require access to physical infrastructure (PIA) for the deployment of high-speed broadband networks. These guidelines apply to operators in different industries (e.g. gas, electricity, railways), so long as they have infrastructure that is suitable for broadband deployment. Since 2016, a Royal Decree has required these companies to make their infrastructure available on reasonable terms – an approach similar to that adopted in Portugal since 2009. These rules are separate from those imposed on Telefonica, which has to provide PIA due to its SMP in the market for wholesale local access.
PIA can also be used to deploy mobile networks: The CNMC clarifies that any infrastructure that can host network elements falls within scope, therefore going beyond just ducts and poles. Crucially, the rules are technology-neutral in that access can also be requested to deploy mobile networks, as long as they deliver speeds of at least 30Mbps. This marks a difference with the requirement imposed on Telefonica, which is limited to fixed network deployment only. The main requirements for access seekers relate to the need to make specific requests (e.g. details of the locations where access is requested, and of the network elements to be deployed). The right to access is not absolute, since it cannot be used in an “abusive or disorderly manner” and does not justify irregular occupation of infrastructure.
In practice, access prices could sit close to those regulated for Telefonica: The CNMC clarified how it will resolve pricing disputes. In theory, the rules leave pricing to commercial negotiations – unlike access to Telefonica’s PIA which is subject to cost-oriented prices. However, the CNMC notes it could use Telefonica’s reference offer, or Cellnex’s offer for access to its transmission centres, as a reference to determine prices when it intervenes. In practice, this could result in commercially negotiated prices being set around the same levels. Access to physical infrastructure can make up to 80% of the costs of deploying a network, which is why the CNMC is keen to clarify what constitutes a reasonable price.
Spain’s approach has worked very well so far: Spain has been one of the most successful European countries in achieving full-fibre coverage. As of May 2021, FTTH coverage stood at 85% of households. This marks a significant improvement since 2016, when FTTH coverage stood at just 55%. A lot of progress has been made in rural areas, where coverage jumped from 6% to 60% of households. Favourable conditions for access to physical infrastructure have played an important role, particularly considering that the investment has come from multiple operators, with Telefonica accounting for less than half of the FTTH lines installed.
Source: https://www.cnmc.es/node/392557
