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CNMC proposes launch of ‘NEBA local’ product in areas covering 65% of Spanish population.

Spain’s telecom regulator this week proposed that Telefonica should offer virtual unbundled access to its fibre network in areas covering around two thirds of the Spanish population.

The Comisión Nacional de Mercados y Competencia (CNMC) wants the incumbent to offer a ‘NEBA local’ product, analogous to virtual unbundled local access (VULA) in other markets, in areas where it deems there is insufficient network-based competition.

Areas designated as non-competitive house 65% of the population.

The remaining 35% reside in 66 towns and cities where there are at least three operators building out next-generation broadband networks and therefore no regulated wholesale offer is required, the regulator explained.

The NEBA local product will enable alternative operators to provide fibre-based services to customers via Telefonica’s network with interconnection at the central office. Spain already has a NEBA (Nuevo Servicio Ethernet de Banda Ancha) system in place for wholesale access to lower-speed broadband networks, which provides access into the incumbent’s network at a provincial, rather than local, level.

Under the new offer, rival operators will have access to fibre at up to 300 Mbps, although they are able to broker deals for lower speeds, enabling them to launch a variety of retail services, the CNMC said.

It has opened a consultation into the proposals, giving interested parties two months to respond.

The proposal will then go to the European Commission, before eventual approval by the CNMC.

Once approved, the regulator expects Telefonica to launch NEBA local within 12 months.

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