Following criticism from the European Commission over a lack of competition on certain wholesale broadband markets (IP/07/1968), Spain’s Comisión del Mercado de las Telecomunicaciones (CMT) developed rules that would regulate broadband access. These rules, however, have been criticised by the Commission in recent days on the basis that they may be incompatible with Community law.

CMT’s proposed rules would allow access to the civil works infrastructure of the incumbent as well as wholesale broadband access to the local loop, but only up to the speed of 30 MB/s. At the same time, CMT’s proposal would lighten regulation in areas where alternative operators have rolled out their own infrastructure and where broadband competition has developed.

In the Commission’s view, CMT’s proposal lacks sufficient basis for excluding high speed broadband from the rules and also improperly lightens regulation in areas where competition is developing. The Commission has two months to make a final determination on CMT’s proposed rules. Reportedly, however, CMT and the Commission are in talks to resolve their differences.