The alternatives strike back

If it works, don’t fix it… I think this is what people at Telefonica think after the announcement last week that they were going to double upstream datarates.

After their announcement, the alternative operators (Vodafone, ONO, …) have released similar offers together with price reductions.

This means that shortly we may see here in Spain a generalization of ADSL deals with upstream datarates near 1Mbps, which is obviously not ideal, but anyway, it is a step forward.

However, my concern is that all of the alternative operators have reactive policies to the moves of Telefonica. They always react when Telefonica offers new services, Telefonica reduces prices… Then, they tend to slighty improve the deal of the incumbent. Fair enough… Anyway, taking into account the position of Telefonica, unless innovative services and new bundles are released, I can not see a change in the tendency of the development of broadband in Spain, which has now slowed down due to the economic situation.

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2 thoughts on “The alternatives strike back

  1. Carlos,

    It seems to me that the crisis might explain some of the slow down, but the lack of serious competition to Telefonica probably explains more. I can understand your frustration, but the fact is that the competitors, with the exception of cash-stranded Ono are all owned by incumbents. I don’t see any of them embracing a truly disruptive strategy in Spain.

    The fact that the regulation tends to protect Telefonica doesn’t help either…

    All this to say that while there is no doubt the crisis has had some impact in the telecom sector (and I know it’s generally more dire in Spain than in some other European countries), I think the roots of the lack of innovation you perceive predated the crisis…

    By the way, will you be in Lisbon at the end of the month ?

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