MADRID, Jan 28 (Reuters) - Spain's telecoms watchdog hasproposed cutting the price that companies must pay to useTelefonica's broadband network, to boost competition ina market the former monopoly still dominates.
The measure would allow alternative providers to offer morecompetitive deals and, at the same, encourage investment innext-generation networks, CMT said on Monday.
Operators have 20 days to respond before CMT submits itsproposal to the European Commission for approval.
The CMT said it proposed cutting the rate for fibre opticconnections, which offer faster internet speeds, by 14 percentto 20 euros ($27) per month, while the price to rent copperwires for standard broadband services will remain 6.50 euros.
The price of "naked" broadband access, which bypasses linerental charges because voice services are not offered, will drop3 percent to 15.10 euros a month.
A spokesman for Telefonica said the company wouldcommunicate its stance on the proposed changes to the regulatoras part of the consultation process.
Telefonica has just under half Spain's broadband connectionsand 96 percent of the country's fibre optic market, according toCMT data.
International operators Vodafone and France Telecom offer broadband services in Spain, alongside home-grownproviders like Jazztel and ONO, which is majority ownedby U.S. private equity firms.
The regulator had said in July it would shake up broadbandservices by allowing third-party access to Telefonica's fibreoptic network and encouraging other operators to invest inbroadband.