Spain’s CNMC has approved the full deregulation of the country’s fixed residential broadband market, most of which relies on modern fibre-optic networks.

Under the new framework, Telefónica will no longer be obliged to grant competitors regulated access to its network in certain municipalities. Instead, the company will be free to negotiate wholesale agreements on market terms with any operators seeking to lease its fibre infrastructure. The deregulation will take effect in February 2026.

The telecoms regulator reached its decision after determining that competition in fixed broadband has improved significantly, warranting the removal of regulatory obligations for the so-called NEBA local and NEBA fibre services. Since the last review in October 2021, Telefónica had been required to provide broadband access – mainly via fibre and, to a lesser extent, ADSL – to competitors in thousands of smaller municipalities covering roughly 30 per cent of Spain’s population. As of next February, these services will be liberalised, falling under competition law and the conflict-resolution mechanisms set out in sector legislation.

However, the CNMC will maintain the existing MARCo framework, which obliges Telefónica to continue offering regulated access to its physical infrastructure – underground ducts, manholes, poles, and similar assets – used by competitors such as MasOrange, Vodafone, Digi, Onivia and Avatel to deploy their own fibre networks. This infrastructure includes 80 million access points serving some 30 million premises, including homes, offices and retail spaces.

Among the key factors leading the CNMC to lift regulatory obligations was the sharp increase in fibre coverage. Telefónica has reached nearly 90 per cent coverage in regulated areas – on par with the 70 per cent per cent coverage in competitive zones – and has seen its fixed broadband market share in regulated areas drop below 50 per cent. The regulator also noted the entry and consolidation of new players and business models, including the creation of MasOrange (from the MásMóvil/Orange merger), Zegona’s acquisition of Vodafone Spain, the rapid growth of Digi, and the role of wholesale operators like Onivia and Lyntia, which have diversified the market and intensified competition. These developments have encouraged commercial agreements between operators, boosted high-capacity network deployment, and expanded retail options for consumers.

To ensure a smooth transition to the new regime, the CNMC has set a six-month interim period during which current obligations for NEBA local and NEBA fibre will remain in place.

As of the first half of 2025, Telefónica operated Spain’s largest fibre network, covering approximately 32 million households. However, in terms of broadband subscribers, MasOrange leads the market with a 38 per cent share, followed by Telefónica (32.2 per cent), Vodafone (14.1 per cent) and Digi (10.5 per cent), according to CNMC data for the end of 2024.

Following the deregulation of wholesale fixed broadband markets and the planned shutdown of copper exchanges in May 2025, physical infrastructure access will remain the only wholesale service Telefónica must continue to provide under CNMC regulation for the residential market.

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Categories: Articles, Broadband, FTTH, Policy, Regulation

Tags: CNMC, FTTH, spain, telefonica