How does the Spanish regulation of NGN affect to final users? Effects on the deployment of new FTTH infrastructures | Telecommunication Systems
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How does the Spanish regulation of NGN affect to final users? Effects on the deployment of new FTTH infrastructures

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Abstract

This article has the objective of obtaining detailed knowledge on the regulation of access to next generation networks (NGNs) and its effects on a specific country, specifically Spain, given that it can be used as a reference to gain a better perspective and draw several conclusions on what has been a global pursuit during a key period of time, 2007–2015, for the electronic communications market in the European Union, where the current and historical role and position of incumbent operators is critical. Focused on NGNs based on fibre to the home solutions and the collateral aspects that support their deployment (coexistence with older access networks based on copper pairs and maintained regulation regarding wholesale broadband transmission services), this paper takes up new issues: the opening of transmission infrastructure and installation and the regulation of new network infrastructures in buildings. In doing so, we obtain a model of infrastructure and service competition that is also regulated by price, which promotes the deployment of new networks. We have generically evaluated the effect of this model on the deployment of NGNs in Spain and its effects on coverage, access to broadband service and the market shares of the different operators. The conclusions describe a successful model to a large degree because except when addressing the strictly economic aspect of return on investment, the objectives proposed by the regulatory agency have been achieved to date (2015) and within a long-term horizon (2008–2023). Given that this phenomenon is not an exact science, the conclusions regarding the goodness of the model will always be subjective and nuanced; however, we indicate that it will be necessary to strengthen the path followed by the regulatory agency through the monitoring of resolutions that maintain a strong framework and sufficient security for operators and users. Certain issues that were not addressed should be studied, given that they have proven to be critical: geographical discrimination, fibre loop disaggregation, new prices for wholesale services that adapt reference offers and greater control of the replicability of retail services. We are facing an open model with a future, as the new measures (2015) of the Spanish regulatory agency show in terms of the near future.

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Notes

  1. General Telecommunications Act 11/1998 of 24 April 1998 (Spanish Law)

  2. SAU: Single Entity Limited Company

  3. Royal Decree Act 1/1998 of 27 February 1998 & Royal Decree Act 279/1999 of 22 February 1999 & Royal Decree 401/2003 of 4 April 2003. (Spanish Laws).

  4. 2002/21/CE of 7 March 2002 on a common regulatory framework for electronic communication networks and services (Framework Directive).

    2002/20/CE of 7 March 2002 on the authorisation of electronic communications networks and services (Authorisation Directive).

    2002/22/CE of 7 March 2002 on universal service and users’ rights relating to electronic communications networks and services (Universal Service Directive).

    2002/19/CE of 7 March 2002 on access to, and the interconnection of, electronic communications networks and associated facilities (Access Directive).

    2002/58/CE of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on Privacy and Electronic Communications).

    2002/77/CE of 16 September 2002 on competition in the markets for electronic communications networks and services.

    Decision 676/2002/CE of 7 March 2002 on a regulatory framework for radio spectrum policy in the European Community (Radio Spectrum Decision).

  5. 2009/136/CE of the European Parliament and of the Council of 25 November 2009 on cooperation between national authorities responsible for the enforcement of consumer protection laws.

    2009/140/CE of the European Parliament and of the Council of 25 November 2009 amending Directives 2002/21/EC on a common regulatory framework for electronic communications networks and services, 2002/19/EC on access to, and interconnection of, electronic communications networks and associated facilities, and 2002/20/EC on the authorisation of electronic communications networks and services.

  6. Since 2011 and before the investigation teams studied solutions to overcome this barrier [54].

  7. Directive 2002/21/CE of European Commission of 7 March 2002 on a common regulatory framework for electronic communication networks and services (Framework Directive). Section 7.6. & Royal Decree 2296/2004 of 10 December 2004 on rules regarding electronic communications markets, access to networks and numbering. (Spanish Law)

  8. Act 30/1992 of 26 November of the judiciary regime of public administrations and the common administrative procedure (LRJPAC). Section 72.1. (Spanish Law)

  9. Fomus boni iuris (Latin)

  10. Periculum in mora (Latin)

  11. In November 2008, the Spanish regulator [12] validated the compliance of obligation (e) by Telefónica and therefore authorized the start of the sale of FTTH services by the incumbent.

  12. It is anticipated that DOCSIS 3.0 solutions over HFC have similar performance to FTTH solutions, although the bandwidth supported by a coaxial cable shall never be similar to the one supported by a fibre optic loop.

  13. We will treat this matter in Sect. 3.2

  14. Ex ante (Latin): Action that is performed before another event occurs

  15. IRR: Is the rate that makes NPV = 0 and below which an investor would not be willing to contribute resources to a project.

  16. Those that already provide the service or could provide it with a lead time of 48 h.

  17. Those that support active services

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Acknowledgments

This research has been partially supported by Ministerio de Economía y Competitividad, Spain, and by the Instituto de Telecomunicações, Next Generation Networks and Applications Group (NetGNA), Portugal, by National Funding from the FCT - Fundaçao para a Ciência e a Tecnologia through the UID/EEA/50008/2013 Project.

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Authors and Affiliations

  1. Department of Signal Theory & Communications and Telematics Engineering, University of Valladolid, Paseo de Belén 15, 47011, Valladolid, Spain

    Francisco José García Paramio, Isabel de la Torre Díez, Beatriz Sainz de Abajo & Miguel López-Coronado Sánchez-Fortún

  2. Instituto de Telecomunicações, Universidade da Beira Interior, Covilhã, Portugal

    Isabel de la Torre Díez & Joel J. P. C. Rodrigues

  3. University of Fortaleza (UNIFOR), Fortaleza, Ceará, Brazil

    Joel J. P. C. Rodrigues

  4. National Institute of Telecommunications (Inatel), Santa Rita do Sapucaí, MG, Brazil

    Joel J. P. C. Rodrigues

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  1. Francisco José García Paramio
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  2. Isabel de la Torre Díez
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  3. Beatriz Sainz de Abajo
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Correspondence to Francisco José García Paramio.

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García Paramio, F.J., de la Torre Díez, I., Sainz de Abajo, B. et al. How does the Spanish regulation of NGN affect to final users? Effects on the deployment of new FTTH infrastructures. Telecommun Syst 64, 391–415 (2017). https://doi.org/10.1007/s11235-016-0172-4

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