Spain: Regulator to break open VMO market

Spain’s competition regulator CNMC decided last week to approve the deregulation of access to mobile network markets, setting a period of six months for all current regulatory obligations to be retired, paving the way for growth in this sector.

The CNMC first looked at the Virtual Mobile Operator market in 2006, setting regulations forcing the three mobile network operators at that time (Telefónica, Vodafone, and Orange) to provide “reasonable access” to their infrastructure for new competitors, which allowed the market to grow with the arrival of new operators under this new VMO model – which do not own their own infrastructure or broadcasting frequencies. There are currently more than thirty VMOs in Spain, working under different business models.

The presence of these companies has intensified competition in telecommunications, allowing fixed-line operators to offer services in tandem with VMOs. These companies (along with a fourth fixed-line operator, Yoigo) now account for over 15% of the market. The CNMC considers this sector to be naturally progressing towards effective competition, justifying the removal of regulatory restrictions to the wholesale market.

Full Content: CNMC

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