Among other things, Telefónica will no longer have to provide access to its fibre networks at regulated prices in certain areas of Spain
Spain’s Comisión Nacional de los Mercados y la Competencia (CNMC) has moved to completely deregulate the wholesale market for fixed-line broadband, formally ending the regulatory obligations on Telefónica for its NEBA Local and NEBA Fibra services.
NEBA, or “Network Broadband Access,” is the system that has let Spanish rivals use Telefónica’s fibre network at regulated rates. NEBA Local connects at exchanges near end users, while NEBA Fibra links at larger provincial hubs. Designed to help operators without last-mile networks compete, it has been key to boosting broadband competition, especially in less commercial areas.
With the CNMC’s latest decision, the rules requiring Telefónica to offer NEBA access will be scrapped after a transition period. From October 2021 until now, these wholesale services were only regulated in areas serving about 30% of the population. Moving forward, they will be subject entirely to commercial competition and the sector’s conflict-resolution framework. According to Cinco Días, the decision marks the culmination of a deregulation process first proposed in December 2024 and follows a public consultation that confirmed growing competitive conditions.
The move had been flagged by strategy consultancy Nae. In that piece, Nae argued that deregulation was a logical next step in a market where “SuperNetco” joint ventures were already reshaping the competitive landscape.
Deregulation rationale
The CNMC justifies the move by pointing to substantial improvements in market competition. Telefónica’s fibre-to-the-home (FTTH) coverage in previously regulated zones has reached approximately 90%, closely mirroring levels in more competitive areas. Its retail market share in those zones has fallen sharply from above 50%.
At the same time, the emergence and consolidation of altnets have transformed the landscape: MásOrange, Vodafone under Zegona, the growth of Digi, and wholesale players like Onivia and Lyntia have significantly diversified services and bolstered competition throughout the country.
To ensure an orderly transition, the CNMC has established a six-month phase-in period during which NEBA Local and NEBA Fibra obligations will remain in effect, with full deregulation taking effect in February 2026.
Importantly, the regulation of Telefónica’s physical infrastructure – conduits, ducts and poles – will remain in place under the MARCo (MArco de Referencia de conductos) framework. This ensures altnets retain access to essential civil infrastructure needed to deploy their own FTTH networks.
Cinco Días pointed out CNMC recently approved hikes of between 11% and 14.6% in MARCo rates, prompting calls for legal challenge from operators such as MasOrange and Vodafone, which argue the increases are excessive despite being lower than the originally proposed 20% average. Despite deregulation of NEBA services, the existing MARCo offers remain fully in place throughout the transition period and until any new regulatory recalibrations are completed.
