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Spain: Regulator forces Telefónica to drop rates up to 35%

 |  April 11, 2017

Spanish regulator CNMC has determined that telecom operator Telefónica must reduce its fees by between 14% and 35% in their wholesale business sector through the Leased Lines Offer Reference (ORLA) system.

The move would impose important price reductions in most of Telefónica’s leased line services (high-capacity connections used by business), justified by a significant reduction in operating costs due to technological development. The CNMC has also proposed an annual revision of these prices in the Ethernet segment, in order to keep them in line with a rapidly evolving sector.

The CNMC has the authority to regulate Telefónica’s prices in this sector through the ORLA system, devised as a means to give Telefónica’s smaller competitors the ability to offer services to businesses with different requirements to residential customers.

Full Content: El Español

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