The Spanish regulator CNMC has approved Telefónica’s fiber-optic wholesale price verification methodology, otherwise known as the ‘replicability test’.
The methodology establishes the criteria to determine the prices of the fibre-optic wholesale offer to allow alternative operators to replicate the main fibre products provided by Telefónica, thereby ensuring a high level of competition in the market.
The CNMC notes that the wholesale regulation of broadband markets was approved in February 2016. Under it, Telefónica is required to provide the local NEBA wholesale service (virtual access to Telefonica fibre) throughout Spain, except in the 66 most competitive municipalities.
The prices of the local NEBA and NEBA fiber services can be set freely by Telefónica.
However, it is conditional that the most representative fibre products from Telefónica (the so-called “emblematic BAU products”) can be “replicated” (that is, they can offer a service equivalent to a similar price) by an efficient alternative operator.
CNMC also says that the parameters used in the ‘replicability test’ and the list of emblematic BAU products will be updated periodically.
It concludes by saying that the CNMC is one of the first regulators in Europe to establish such a ‘replicability test’, in line with the principles introduced by the EC in 2013.
Source: https://www.broadbandtvnews.com/2018/03/19/cnmc-approves-telefonica-proposal/