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BMI View: The latest data from Spain ' s telecoms regulator, the CNMC , for the end of 2015 show that fibre continues to grow as the main access technology for broadband internet services. In December 2015 , the EC approved the regulator ' s proposal to open up Telefonica's fibre network in Spain. Although BMI welcome s this development, we maintain our view that the regulator needs to strike a balance between encouraging investment in new technologies and ensuring competitive markets as well as universal coverage. Zegona and MasMovil are competing to become Spain's fourth major operator, which must be a converged player to be relevant against the three national actors. BMI believes that consolidation amongst the smaller players, adding Euskaltel, is t he best way forward in the long term.
Latest Updates And Industry Developments
In March 2016, it was reported that TeliaSonera and Zegona had entered exclusive talks about the sale of Yoigo in the Spanish market. No financial details were released.
In December 2015, the European Commission approved the Comision Nacional de los Mercados y la Competencia (CNMC)'s proposal to open up Telefonica's fibre network in Spain. Under the regulator's proposal, Telefonica will be required to share access to its network in all of Spain, except in 34 towns and cities where superfast internet is already being offered by three or more operators. Telefonica has threatened to stop the accelerated rollout of its Spanish fibre optic operations if the proposal is approved.
In 2015 (latest data), fibre-to-the-home connections rose by 155,000, surpassing 3.1mn. Most of these belong to Movistar. Total broadband lines reached 13.18mn in December 2015, with Vodafone Espana gaining a net total of 182,000 lines, Movistar gaining 76,000 and Orange Espana 1.79mn (a figure that includes the broadband customers served by JazzTel whose acquisition by Orange was finalised in late 2014).
We forecast only gradual growth in the number of mobile subscriptions, which are now expected to reach 51.218mn by 2020. However, 3G and 4G service uptake will be much more vibrant, with 40.615mn 3G/4G subscriptions by 2020 accounting for 79.3% of the market.
|Fibre Grows At Expense Of Cable And DSL|
|Spanish Broadband Market, 2013-2015|
|Source: CNMC , BMI|