Telefonica Moviles, Vodafone Spain and Amena must open up networks
The European Commission has endorsed the Spanish telecoms regulator, the Comisión del Mercado de las Telecomunicaciones or CMT, in its determination to force Spanish mobile operators to open their networks to third parties.
The mobile operators must listen to “reasonable offers” made by third parties to provide MVNO services over their networks. The CMT has indicated that it will “intervene in the event of conflict”.
Among the measures that the CMT proposed to the European Commission to encourage competition in the Spanish mobile telephone market, the CMT is to force the current Spanish mobile operators, Telefónica Móviles, Vodafone and Amena, to allow virtual mobile operators to access their networks.
The European Commission had the authority to veto this measure proposed by the CMT if it deemed it unnecessary. However, the Competition Commissioner Neelie Kroes gave the CMT’s proposal her ” unqualified support”.
“CMT’s measure will increase competition in the Spanish retail mobile telephone market and benefit 40 million Spanish consumers”, Kroes said.
According to CMT retail prices in Spain remain high and are well above EU average. CMT said in its submission to the EC that Telefónica, Vodafone and Amena jointly hold a position of collective dominance on the wholesale market for access and call origination and tacitly agree not to grant access to MVNOs, as any new entrant into the market (such as an MVNO) would bring retail prices down. Hence by not granting access to an MVNO at the wholesale level Telefónica, Vodafone and Amena can effectively prevent competition on the retail market for mobile telephone services and protect prices which are well above European average.