1) The LGTEL and the European Electronic Communications Code.
With the new LGTEL, the European Electronic Communications Code, approved in 2018, is transposed into Spanish law. In many respects, the telecommunications sector has a clearly supranational component, so the legislative measures adopted in this field are largely determined by the agreements reached at the European level. The Spanish law is, in any case, more ambitious in some key areas, such as regarding collaboration between public administrations in the deployment and operation of electronic communications networks.
2) New Taxonomy for Service Provision.
The new classification of electronic communications services contained in the European Electronic Communications Code is incorporated into the LGTEL (General Telecommunications Law). This distinguishes between:
- internet access services;
- interpersonal communications services (encompassing both number-dependent and number-independent services); and
- signal transmission services.
The CNMC (National Commission for Markets and Competition) is granted full authority to manage the Register of Operators.
3) Number-independent interpersonal communications services (OTTs)
The new law incorporates measures that will apply to providers of number-independent interpersonal communications services (known as over-the-top or OTT operators). The aim is to level the playing field between the obligations of traditional operators and those of new players. Among other measures, OTTs must:
- notify the Registry of Operators of the start of their activity, for purely statistical and census purposes (the link to the form for this notification is available here).
- ensure compliance with obligations regarding the provision of information to the competent authorities.
- adopt any measures that may be necessary for the management of security risks.
- guarantee the rights of end users in the provision of electronic communications services.
- in exceptional cases, number-independent interpersonal communications service providers may have to assume certain obligations regarding the interoperability of their services.
4) Market Regulation and Other Sharing Obligations.
Ex-ante market regulation processes empower the CNMC to impose regulatory measures (such as access obligations) on operators declared to have significant market power in a reference market. The timeframe for undertaking these review processes is generally extended from three to five years. More flexible regulatory mechanisms are introduced, such as procedures for assessing binding commitments and joint co-investment in very high-capacity networks, and the regulations applicable to exclusively wholesale operators (neutral operators) are simplified, given that the economic incentives for these agents are different (since they are not vertically integrated).
Furthermore, the powers of the CNMC are developed to impose on operators obligations to share very high capacity networks inside buildings or in adjacent areas, if necessary to ensure that new network deployments are carried out under competitive conditions.
5) Universal Service
The new LGTEL contains significant changes in the area of universal service. Firstly, only the guarantee of adequate and available internet access via a fixed connection, as well as voice communication services provided via a fixed connection, are considered part of the universal service. Consequently, other concepts such as the provision of telephone service from public payphones, or telephone directory and telephone information services, are excluded from the scope of universal service.
Secondly, the minimum internet access speed is set at 10 Mbit/s downstream, scalable to 30 Mbit/s by royal decree. Beyond the universal service, the objective is introduced to universalize internet access at a minimum speed of 100 Mbit/s within one year, to promote social and territorial cohesion through the deployment of high-capacity networks.
Furthermore, the new law extends the affordability obligations for universal service to all operators providing internet access and voice communications services. The CNMC will monitor the evolution and level of public pricing for services included in the universal service in relation to national consumer price and income levels, and may require operators to modify or eliminate tariff options or packages offered to low-income consumers or those with special social needs.
6) End-user rights.
As advocated by the European Electronic Communications Code, full harmonization at the European level is being carried out regarding the rights of end users of electronic communications services. The new LGTEL also strengthens the right to information and the requirement to obtain users' explicit consent.
The development of independent price and service quality comparison tools is also promoted, as is the adoption of measures to guarantee service quality, with the latter task entrusted to the CNMC (National Markets and Competition Commission). In this regard, and among other functions, the CNMC will conduct, every two years, a study of the service quality offered to end users in rural and sparsely populated areas compared to the average service quality offered to all users. The CNMC is also assigned functions aimed at guaranteeing the switching of internet access service providers, in addition to the powers this body already holds in the area of number portability.
This set of measures should help users of electronic communications services to make informed decisions in an environment of transparency and with full respect for their rights.
7) Spectrum.
Regarding the management of the radio spectrum, the processes for awarding and managing the radio spectrum are streamlined, and certain obligations are reconfigured to ensure its effective and efficient use. Furthermore, measures are implemented to facilitate spectrum sharing among mobile operators. It is also established that exclusive use rights with a limited number of licenses will have a minimum duration of twenty years, renewable only once, for an additional period of at least five years and up to a maximum of twenty years. In this area, the advisory powers of the CNMC (National Markets and Competition Commission) are significantly strengthened.
8) Numbering. Roaming and regulated intra-Community communications.
The allocation of numbers to companies that are not providers of electronic communications or network services is foreseen. The extraterritorial use (within the European Union) of non-geographic numbering for the provision of machine-to-machine (M2M) services is also promoted. In this area, the CNMC is granted full authority over the management and allocation of numbering.
Furthermore, the new LGTel expressly establishes the powers of the CNMC and the Ministry of Economic Affairs and Digital Transformation in the field of international roaming and intra-community calls.
9) Operator Rights and Deployment of Public Electronic Communications Networks.
The mechanisms for collaboration with public administrations for the installation and operation of public electronic communications networks are being improved. Likewise, the new law develops the obligations regarding access to physical infrastructure for infrastructure owners (including public administrations) as well as the coordination of civil works, which were previously covered by Royal Decree 330/2016, of September 9, concerning measures to reduce the cost of deploying high-speed electronic communications networks. In this area, the CNMC will continue to be the authority responsible for resolving disputes that may arise between operators, through conflict resolution procedures.
Furthermore, the right of public administrations to install public electronic communications networks or provide services directly is recognized, and not only through entities or companies whose corporate purpose or objective is the installation and operation of networks or the provision of electronic communications services.
10) Geographical Studies
. Annual geographical studies on the reach and extent of broadband networks, including very high-capacity networks, are planned. The information contained in these studies will serve as the basis for the development of national broadband plans; the design and application of regulations on public aid; the determination of coverage obligations linked to spectrum usage rights; and the verification of service availability within the framework of the universal service obligation. The CNMC may also use the information contained in these geographical studies in the performance of its functions.
Source: CNMC
