The president of Vodafone Spain, Francisco Roman, described on Monday the agreement between Telstra and Telefonica network sharing as “greater cooperation and coordination” between rivals seen in Spain, which discriminates against third parties and harms the whole competition.
For Roman, the alliance is a marriage of the incumbent, “you can do whatever you want”, and the company should be the “lever” of the sector. “It is an anti-competitive agreement and discriminates against other companies. Believe that we are right and we have reported to Competition”, he asserted the executive during the XXVII meeting organized by Ametic telecommunications.
Telefonica and Telstra announced in early August several network sharing agreements, whereby Movistar 4G services available on Telstra network, which, in turn, may market a product with converged mobile and fixed services (voice and broadband) by Telefonica.
Telefonica, to meet the limits set by the regulations. However, with this deal Telefónica can now use these frequencies to transfer Telstra spectrum.
Also, for the manager this agreement is a sale of infrastructure. “It is important to create an environment conducive to investment. Must be kind and indulgent avoid the dominating, because this will affect society,” said Roman.
“Absurdly” demanding the “dominant”
In addition, Roman has been critical to the regulation that applies to operators with the largest share in the mobile market in Spain, Telefónica, Vodafone and Orange. “We are demanding absurdly three mobile operators, who say they have absolute dominance”, he said.
Orange and Vodafone to bring FTTH to nearly one million Spanish homes
Orange and Vodafone plan to bring fibre-to-the-home (FTTH) to at least 800,000 Spanish houses by March next year.
To Roman these operators have a “sword of Damocles” constant. Thus, the manager explained that “anyone” can be asked to sit down and negotiate with them and “any” I can report to the regulator for not reaching an agreement, which, in his opinion, responds to the situation in 2006 and not present, with about 30 mobile operators in the market, including companies that rent these third network (MVNO).
“Is there anyone who doubts the competition in the existing phone?. Burden (which drag these incumbents) is related to the thought that the more the better, regardless of whether the model is sustainable. The problem is if it is profitable maintain that pace, “he pointed.
Verizon Communications neared a long-anticipated deal on Sunday to buy the 45 percent stake in its wireless business held by Vodafone of Britain for about $130 billion, heralding a continued sweeping realignment within the global telecommunications landscape. Though a deal may have little effect on Verizon Wireless’s nearly 100 million subscribers at first, it would ripple through the telecommunications industry and Wall Street, with both having closely watched the back-and-forth of the negotiations for months.