The Offers of Movistar Will No Longer Have The Prior Approval of The CMT

So we already olíamos long time but now has gone more paperwork and is approaching the moment of application. Back in October of last year the CMT made public his intention to change the method used so far to review products and offers from Movistar with a important change.

All the packaged products which include the use of a landline as Movistar Fusion, they have to go through the hands of the Commission, which is responsible for submitting to a test of narrowing of margins to ensure its replicability, but soon this will change, since promotions may be released without prior filter.

To understand the because of this supervision and the change that will be applied once the European Commission for its approval must take into account the role of incumbent that was until recently nothing Movistar. Mobile your domain was not as overwhelming as in fixed telephony, where despite increasing competition in recent years still maintains a 49% and 63% of the market share in fixed lines only of voice lines with Internet.

Due to the dominance of the market with the had in these markets, favoured by having a copper pair network inherited from the time that Telefónica was the State-owned company with a monopoly position, the WCL has maintained a strict control of their movements, with the power to control the line rental fee and monitor new products and promotions until they saw the light and forcing marked prices, to rent its lines to competition.

Change in methodology

But once the new methodology of control products and promotions from Movistar starts single regulator will oversee the final product while promotions and offers prices with expiration date will be only reviewed every six months, and can the operator playing with that margin to launch product packaged hardly replicable by competitive offerings pre-release.

In principle the old system of review of offers and the new coexist for a while until the new system is the only one. Still well in the semi-annual review if the CMT detects that a narrowing of margins that it hinders replica of the offerings from this competition will proceed to lower the wholesale price, which other operators access to Movistar lines to allow them to match or improve the offerings of this.

It is understandable in part by the fall in market share both in fixed and mobile telephony in recent years of Movistar to the CMT you something more than wide sleeve to the operator, which already allows you to take control of the line rental price but with limits, but this new method could be a danger to competition If the ex-monopolio takes advantage of a fixed telephone network paid with the money of all that with the privatization of the company happened to be owned by a private company.