The Spanish Comisión del Mercado de las Telecomunicaciones (CMT) has today published a detailed resolution (dated 25 March 2004), in which it determined that the net cost to Telefónica de España, being the designated provider of Universal Service in the year 2002, was €110.1 million.

The CMT revised downward the figures put forward by Telefónica (which had claimed a total amount of €233.8 million), including amounts to cover the provision of:

• telephony in non-profitable zones
• telephony to users benefiting from special social tariffs
• special services to disabled users

and deducted €71.4 million worth of immaterial benefits accruing to Telefónica by virtue of being the provider of Universal Service throughout Spain.

The CMT concluded that the net cost of €110.1 million did not constitute an unfair burden for Telefónica (and noted that fixed-to-mobile substitution is not having an impact justifying a compensation), and hence no system of sector financing of Universal Service is being activated for the year 2002.

The full text of the CMT resolution can be accessed by clicking here.

Note 1: Telefónica did not claim any compensation for the provision of public pay telephones. This stands in sharp contrast with the situation in other EU Member States.

Note 2: Four out of nine CMT Commissioners voted against the CMT resolution. Their statements of objection are appended to the CMT resolution.