Telefonica has been fined EUR 5 million by communications regulator CNMC for repeated breaches relating to the lease of its last mile fixed backbone network to rival operators. Specifically, the CNMC accused Telefonica of failing to heed orders to provide guaranteed and fully symmetrical access to its high-capacity Ethernet circuits, especially with regard to broadband services offered by alternative operators to the business segment (large companies, SMEs and freelancers). According to the regulator, Telefonica overcharged its rivals, applied illegal permanence clauses and exceeded the established delivery times. The breaches took place between October 2010 and February 2015 and affected several operators, including BT, Vodafone and Jazztel.
Telefonica has been given a two-month term to appeal against the CNMC’s decision before the contentious-administrative courts. The regulator’s latest fine comes after the European Court of Justice (ECJ) last year upheld a fine of EUR 151.9 million imposed on Telefonica by the now defunct regulator CMT for abusing its dominant position in the Spanish broadband market from 2001 to 2006.
