The National Commission on Markets and Competition (CNMC) in Spain has decided to fully deregulate the wholesale fixed broadband markets, a move that is expected to significantly impact telecommunications companies and consumers alike. This decision follows a public consultation and reflects an increase in competition within the residential broadband market.

As a result of this deregulation, Telefónica will no longer be bound by regulatory obligations regarding its NEBA Local and NEBA fiber services, which previously applied to only 30% of the population since October 2021. Instead, Telefónica will provide these services under commercial terms nationwide, marking a shift towards a more competitive environment.

The CNMC has observed notable improvements in competition, including increased fiber coverage, a reduction in Telefónica's retail market share below 50% in regulated areas, and the emergence of new operators and business models. Companies like MÁSORANGE, Zegona's acquisition of Vodafone, and Digi, along with wholesale operators such as Onivia and Lyntia, have diversified the market and enhanced competition.

To facilitate a smooth transition, the CNMC has established a six-month transitional period during which current obligations for NEBA Local and NEBA fiber services will remain in place. However, access to Telefónica's physical infrastructure will still be regulated, ensuring that competition is maintained and high fiber availability is achieved.

Competition law advisors are urged to prepare their clients for these regulatory changes, particularly in monitoring the CNMC's ongoing evaluations of Telefónica's infrastructure access conditions. This deregulation signifies a pivotal moment for the broadband sector, necessitating a reassessment of pricing strategies and service offerings in response to the evolving competitive landscape.