After receiving comments from the European Commission, the Ministry of Industry, Energy and Tourism and the Ministry of Economy, the Spanish National Market and Competition Commission (CNMC)has decided to maintain differentiated obligations for copper networks and Telefonica´s fibre optic network. The CNMC also imposed differentiated obligations according to the competitive pressure existing in each geographical area (criterion of market segmentation).

For the direct access market, the CNMC extended the areas identified as competitive in terms of next generation networks (optic fiber networks to homes and coaxial networks with technology DOCSIS
3.0) to 66 municipalities corresponding to almost 35% of the population. There is a minimum of 3 operators simultaneously deploying next generation networks. Given the healthy competition in these
municipalities, the CNMC will not impose regulatory obligations on Telefonica´s fiber optic network. Nonetheless, the regulated access to the copper network and the use of Telefonica´s civil infrastructure will be maintained with cost-oriented prices. For the rest of the territory, Telefonica is obliged to provide virtual access to its fiber optic network within 18 months.

For the indirect residential access market, the CNMC likewise extended the areas identified as competitive to 758 stations, which cover more than 7 million broadband lines (58% of the total lines in
Spain). The CNMC will remove the obligations relating to indirect access within 6 months. For the less competitive areas, however, the CNMC will maintain the ability to offer wholesale indirect access
to the copper network and to Telefonica´s optic fiber network without the current speed limitation (30 Mbps).

Finally, to encourage competition in the market, the CNMC imposed an obligation on Telefonica to open the wholesale indirect access to fiber and copper networks to alternative operators in the business segment, and which should be made available to the whole national territory.

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