Telefónica is taking very seriously the massive deployment of FTTH.
They started in 2007 with some pilots and in 2010 they massively deploy FTTH in Barcelona and Madrid. This year they finished covering Barcelona and they are almost done in Madrid as well.
Their next step is to push hard and invest 1.200M EUR in the next three years to cover 50% of the Spanish population. Orange and Vodafone are screaming that Telefonica will be again in a monopolistic situation…
The point is that Telefonica strategy is giving them good results if we have a look at the statistics of the last month published by the CMT (Spanish watchdog).
FTTH connections in June in Spain increased by 12.000 users, while DSL increased by just 3.000 users and CATV decreased by 5.000 subscribers (follow this link in Spanish for more details). I think this is a tendency that will continue because many subscribers are migrating from DSL and CATV to FTTH. Additionally, with the VAT increase in September, video service taxes will change from 8% to 21% and this will severely affect the number of subscribers.
My question now is what will happen with the other 50% of the Spanish population that will not be covered by FTTH and also whether the alternatives will start deploying fiber in order to compete against Movistar. Both Orange and Jazztel announced that they were going to deploy FTTH but their plans have not been clarified yet. Vodafone I think is more interested in the mobile market and they will keep their plans to increase their market share there.