Vodafone Is Quite Clear: Conditions for The Purchase of Canal + and Geographic Regulation for Fiber

Yesterday we could already hear the CEO of Vodafone, Vittorio Colao, talk group of different requests to the European Union with regard to consolidation and single market, speech that she married to perfection which was also the Chairman of Telefonica, Cesar Alierta. But after requests to Europe today was the turn for the President of Vodafone Spain, Antonio Coimbra, which has duties to the Spanish regulator.

After a review of the current situation of the market of telecommunications in Spain, decline of revenues and EBITDA to according to it discourages investment, the CNMC (and the Government) requests by Vodafone have been very clear: setting conditions to the purchase of Canal + by Telefónica, a new regulation for the fiber according to geographic areas of competence, the Elimination of the rate to finance RTVE and the arrival of the digital dividend.

Before getting into stuff Coimbra has wanted to do a small review of the business of the telecommunications in Spain figures. Highlighted such as the income of operators with network have fallen between 2009 / 2010 and 2013 / 2014 a 30% while that of the virtual have grown by 300%. Stresses also that the descent is motivated by mobile telephony, since revenues from fixed-line telephony have just dropped.

With all this data Vodafone concludes that a loss of value is taking place when the demand to grow, which according to them no help to the enterprises, focusing on network operators, invest. This same has earned to introduce the next topic, cOMO encourage growth and the development of the digital economy.

The purchase of Canal + by Telefonica, main concern

Once presented the situation of the environment was time for Vodafone started with their demands. According to the company the regulators currently live obsessed by the number of competitors in the market, We already know that they are favourable to the reduction of the number of operators, when according to Coimbra should worry more to boost growth.

Bypassing on Petitions to Europe already I do yesterday Colao, today was the turn for movements to the CNMC and Government in two fronts: networks fixed new generation and television, being probably the latter which seems more concerned about Vodafone.

The focus has been on the purchase of Canal + by Telefónica. The announced acquisition is still pending of the relevant authorizations, so the operator requests to establish conditions in the process for ensure competition in the pay television sector, something that also asked in his Orange day on merger offers with TV.

Course is in the former image as this market with the union of Movistar and Canal + will be. In addition there are to take into account the growing acquisitions of rights that is making the ex-monopolio, with the Formula 1 and the World Championship headlining. It should be remembered also that Vodafone in its day withdrew from the television market even though it has now returned following the purchase of ONO.

Elimination of the RTVE rate and regulation of fiber

In this sense goes another of the demands of the British, the Elimination of the RTVE rate. Currently all operator directly offering pay TV customers that pay a 0.9% of total gross revenues, not generated solely by the business television, to finance radio and public television. This is certainly a logical request and in the mouth of all operators since it was imposed after withdrawing advertising from the public body.

To finish with the requests in addition to the digital dividend Vodafone had one last clear request, a new regulation for the fiber. After having demanded for years the opening of Movistar fiber all operators the discourse has shifted slightly now, asking is that they are established different regulations depending on the geographical area.

The explanation is simple: where there is interest private economic profitability by deploying fiber each operator would have to resort to its own fiber. Now, in places less profitable or interesting for operators Vodafone It asks to be encouraged co-investment or fiber Movistar Open.

Vodafone, has given few more news us in addition to the announcement of the upcoming availability of VoLTE and LTE-to which we have already spoken. The discourse of Coimbra as you have seen has been riddled with logical requests for his part, focusing especially in the television business and fixed broadband.