Spain’s Watchdog CNMC Reports Lower Traffic Growth on Telecommunication Networks

Spanish national telecommunications regulators have announced that the average peak use of FTTH (Fiber-to-the-Home) data on telecommunication networks is much lower than earlier estimates.

The CNMC (National Markets and Competition Commission) stated that the traffic growth on telecommunications networks had reduced to 9.17%, as opposed to the previous estimated 25% year on year growth. An average peak use of only 2.7Mbps was recorded in 2022. This figure is expected to rise to 3.2Mbps in 2024.

As a part of the review process on the current prices of bandwidth, CNMC lowered the amount of money Telefónica was able to charge from €1.97/Mbps to €1.75/Mbps. These changes were made after updating predictions of traffic growth for the coming years.

The eight million subscribers of Telefónica’s FTTH network were expected to have an average peak use of 3.834Mbps (peak) per day. However, CNMC stated that these predictions were much higher than the actual data use as Covid had caused a 55% increase in traffic in the months leading up to May 2021.

Related: Spain’s Antitrust Regulator Raids Power Firms

Interconnecting operators saw a slightly higher rate of 11.3%, still much lower than the estimates from 2021.

This may be good news for Telefónica’s subscribers as the lower rates should translate to better data usage for consumers, who need not worry about expensive data bills.

The changes in estimates have come as a sign of progress for the operators, as regulators now have a more accurate idea of the actual traffic on the network.

The lower estimated growth rate, however, paints a picture of a more digital Spain with increased access to the digital market. It also shows the slow pace of digitalization in markets that are still catching up with other countries.

Nevertheless, the lower estimates are welcome news for Telefónica subscribers, as they can now enjoy a better data experience without hefty bills.

Source: Mobile Europe