Telefónica faces regulatory scrutiny in Spain over infrastructure costs and universal service status

Spain's National Commission on Markets and Competition (CNMC) has intervened in two significant regulatory matters involving Telefónica.

First, the regulator has ordered Telefónica to revise budgets and technical studies presented to the local operator Closeness. The dispute arose after Closeness challenged the costs and technical requirements imposed by Telefónica for adapting 176 utility poles to deploy fiber optic cables in the Alicante province. The CNMC found deficiencies in the technical assessments and identified costs that exceeded established references, forcing a recalculation of the expenses required for infrastructure sharing.

Separately, the CNMC has issued a favorable report regarding a proposal to end Telefónica's designation as the universal provider of fixed internet and landline telephone services. The proposal, developed by the Secretariat of State for Telecommunications and Digital Infrastructures, argues that these services are now widely available through existing market competition. While the universal service mandate itself remains a legal right for citizens, the specific obligation for a single operator to guarantee these services is no longer deemed necessary due to high network coverage and market evolution.