Telecommunications Regulation. SPAIN Uría Menéndez Abogados, S.L.P.

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1 Telecommunications Regulation SPAIN Uría Menéndez Abogados, S.L.P. CONTACT INFORMATION Pablo González-Espejo Uría Menéndez Abogados, S.L.P. C/ Príncipe de Vergara 187, Plaza de Rodrigo Uría 28002, Madrid (Spain) What is the name and nature of the regulatory body(ies) in your jurisdiction? To which bodies (if any) are decisions appealed? The Commission of the Telecommunications Market (Comisión del Mercado de las Telecomunicaciones) is the national regulatory authority in charge of market regulation. In addition, certain powers and responsibilities are vested in the Spanish Ministry of Industry, Tourism and Commerce (Ministerio de Industria, Turismo y Comercio) and, in particular, in the State Secretary of Telecommunications and for the Information Society (Secretaría de Estado de Telecomunicaciones y para la Sociedad de la Información). Decisions of such administrative bodies may be appealed before the Spanish courts. 2. Has your jurisdiction adopted the WTO Basic Telecommunications Agreement? If yes, with what exceptions, if any? Yes. Limitations are those contained in the schedules of specific commitments and in the list of exemptions of the European Union annexed to the Fourth Protocol on Basic Telecommunications. 3. Are operators in your jurisdiction privately or publicly/state owned?

2 Privately owned. 4. What are the primary differences between the regulation of wire line, wireless, satellite, cable and VoIP providers? All of these services are liberalised. The main difference is that wireless and satellite services require spectrum, which is subject to a concession or authorization. 5. Are broadcasters regulated separately from telecoms? Yes. 6. How are satellite earth stations and submarine cable landings regulated? No particular rules apply. 7. How is the radio spectrum generally regulated? The radio spectrum is regulated by the Spanish General Telecommunications Law (Law 32/2003) and its ancillary regulations (e.g., Royal Decree 863/2008). As a general rule, the use of the radio spectrum is subject to an administrative authorization or concession. 8. Are any operators granted exclusivity? 9. Are anti-competitive practices subject to regulation or general competition (e.g., antitrust) laws? They are subject to general antitrust law, although certain specific antitrust rules for the telecommunications market are set out in the Spanish General Telecommunications Law and its ancillary regulations. 10. What services have been liberalized or designated as competitive services? All services have been liberalized (as of April 24, 1998). 11. Are there regulated tariffs or price lists? If so, for what types of services? Not in general terms. Only few services have regulated tariffs and price lists in relation to interconnection and access services rendered by operators with significant market power. In particular, there are intervened prices for access to the local loop (OBA), interconnection (OIR), hired networks (ORLA) and wholesale access to the telephone network (AMLT).

3 12. Are there restrictions on foreign investment in any types of communications companies? If so, what are the restrictions? Yes, in some cases. 13. What are the approval processes for mergers and acquisitions? Do these vary by type of operator? No specific rules for mergers and acquisitions apply other than general antitrust issues. The Commission of the Telecommunications Market must inform the government in those transactions subject to antitrust rules. 14. Is interconnection between carriers mandatory? Yes, in the sense that there is an obligation of operators to negotiate interconnection and the possibility of the Commission of the Telecommunications Market to impose interconnection obligations. 15. Are interconnection fees/rates regulated? Yes, in the sense that the Commission of the Telecommunications Market can order operators with significant market power to pass an interconnection offer to guarantee interconnection and non-discrimination among third operators interested in obtaining such interconnection. 16. Must carriers make available network components to competitors? If so, what are fees/prices based on cost, or market rates? Yes, incumbent carriers can be obliged to provide access to network resources, based on costs. 17. Is there an obligation to serve all customers? If yes, is there a fund to subsidize eligible carriers? Which carriers contribute to the fund? Which carriers are eligible to receive these funds? Are broadband services subsidized or otherwise promoted through tax or other incentives? Yes, services qualifying as "universal service" must be available to all customers. Spanish General Telecommunications Law sets out compensation mechanisms if it is determined that the provision of "universal services" is onerous for the eligible carriers. 18. Are there mandatory requirements to customer agreements (subscriptions, etc.)?

4 Yes (e.g., Spanish Royal Decree 899/2009, of May 22, approving the letter of rights of electronic communication services users). 19. Are there any general or telecommunication specific requirements as to data retention? Yes, specific data retention rules apply in accordance with Spanish Law 25/2007 on retention of data on electronic communications and public communications networks. 20. Is number portability mandatory? If so, for which types of carriers (e.g., wireline, wireless, voice over internet protocol)? Yes. Number portability is regulated by the Spanish General Telecommunications Law for all operators exploiting telephone public networks or providing telephone services to the general public. 21. Is equal access dialing selection mandatory? If yes, for which types of carriers? Yes. For fixed telephone carriers that have been declared as incumbent operators. 22. Is access or other contributions ( ADCs ) required of new entrants? 23. Is VoIP regulated? If yes, to what extent? Yes. VoIP services are considered "nomadic vocal services" (servicios vocales nómadas or SVN) and qualify as, and are subject to the specific regulations of, electronic communication services. 24. Are any major changes to telecommunications laws expected in the near future? 25. Is resale of telecom services permitted? If yes, is this activity regulated? What is the process to become a reseller? Are foreign companies permitted to be resellers? Yes. To become a reseller, companies must register as telecommunications operators providing reselling services in the Commission of the Telecommunications Market (Comisión del Mercado de las Telecomunicaciones).

5 According to Spanish General Telecommunications Law, foreign companies have certain restrictions on becoming registered operators.

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