We already know the new prices that the different operators that use Telefónica’s indirect fiber will pay. The CNMC has confirmed the reduction in its prices, so that from now on it will cost less for operators to have indirect access to the network of the well-known Spanish company.
It must be taken into account that NEBA wholesale fiber or New Broadband Ethernet gives alternative operators the opportunity to resell Movistar fiber at regulated prices. Well, today we hear the news that those companies that resell the blue operator’s fiber will pay less as wholesale prices for indirect fiber access are lowered.
This leads us to ask ourselves the following question: will we see cheaper rates? In addition, these same prices will be maintained from now until two years from now. Therefore, until 2025 we will not know the new prices that operators will pay for the capacity in PAI (indirect access point) of the NEBA wholesale broadband service. Basically because it has been established how much it will cost in 2023 and 2024.
11.17% less for 2023
Of the total of 8.32 million active fiber optic lines in the Telefónica network (the latest data is from February 2023), it must be taken into account that 3.26 million belong to the wholesale services regulated by the CNMC , NEBA and NEBA local, which provide access to Telefónica’s FTTH network. Of these, 1.07 million corresponded to NEBA (copper and fiber). The NEBA’ service has 50 access points, one in each province. The operators connect to these points to access their customers through the Telefónica’ network.
This resolution, published by the CNMC today, sets the prices for the next two years. The current cost (as of 2022) of the capacity in PAI is 1.97 euros per Mbps. However, for this 2023 a price of 1.75 euros per Mbps has been approved. Therefore, it represents a reduction of 11, 17% compared to the cost of the previous year. In addition, for 2024 a cost of 1.61 per Mbps has been set, that is, 8% less.
This change is due to the obligations of the CNMC. For this reason we find the frequent updating of prices by capacity. This is because every year the traffic increases. And in case of not reviewing the price, there could be a mismatch with respect to the cost of offering the service.
To carry out this review and correct price calculation, the CNMC has used a fully updated bottom-up cost model. This cost model has been made from the existing model. And as appropriate, this new cost calculation has been approved after completing the notification process that has been sent to the European Commission, BEREC, National Regulatory Authorities of other EU Member States, to the Secretary of State for Economy and Support to the Company (SEEAE), and the Secretary of State for Telecommunications and Digital Infrastructures (SETID), without receiving any comments in this regard.
