Amid objections, Telefonica to begin offering broadband access via fiber
SEPTMBER 5, 2008 By the Lightwave staff -- Spanish telecommunications operator Telefonica (search for Telefonica) yesterday announced that it would begin selling broadband Internet access via its new fiber-optic network on October 31, 2008, despite protests from other carriers who are lobbying to get the network open for competition, Reuters reports.
Telefonica will reportedly offer Internet speeds of 30 Mbits/sec. The carrier says it will initially offer this service only in certain areas of select cities, such as Barcelona and Madrid, where it has already rolled out its € 1 billion network.
According to Spanish telecom regulator CMT (Comision del Mercado de las Telecomunicaciones de Espana), Telefonica enjoyed a 56.9% share of direct-access Internet lines in the first quarter of 2008, dwarfing its nearest competitor, Spanish telecom company Ono, which held a 16.2% share.
Telefonica hopes to have between 11 million and 12 million broadband customers by 2010.
But not if its competitors have anything to say about it.
According to the Reuters report, "Telefonica's rivals in Spain fear the launch of the faster Internet products will help the ex-state monopoly to further tighten its dominance in the internet market."
Among those who believe Telefonica's fiber-optic lines should be shared are Vodafone Group and France Telecom's Orange, both of which offer services in Telefonica's footprint. Both say they will register their complaints with CMT, with France Telecom's Orange taking it a step further; Reuters reports that the carrier will "take legal action to try to freeze Telefonica's launch of the product."
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