Álvarez-Pallete (Telefónica): "It is time to write the rules of the 21st century"

The executive president of Telefónica, José María Álvarez-Pallete, welcomed this Thursday the dialogue that the European Union has opened in an open consultation that seeks to redefine the regulation of European telecommunications networks.

Thomas Osborne
Thomas Osborne
24 February 2023 Friday 15:53
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Álvarez-Pallete (Telefónica): "It is time to write the rules of the 21st century"

The executive president of Telefónica, José María Álvarez-Pallete, welcomed this Thursday the dialogue that the European Union has opened in an open consultation that seeks to redefine the regulation of European telecommunications networks.

The manager, who recalled that he has been calling for this change for years, has insisted that this is the "time to write the rules of the 21st century" because the sector has nothing to do with the one that is regulated and that was based on control of copper networks.

"Now, 60% of the traffic that goes through fiber networks is occupied by six large operators such as Google, Facebook... and this type of platform and it is fair that they contribute and pay for the use of an infrastructure whose deployment is very expensive", Álvarez-Pallete pointed out.

From Telefónica, they remember that the legislative change does not have to come only from Europe. Spain must also address a reform. The president of Telefónica continues to defend that it is obsolete for the group to continue to be considered a dominant operator, ceding networks to competitors, when in Spain there are already at least three large companies that deploy networks in large Spanish cities.

“The regulator must recognize the reality of pay television. We are considered the dominant operator when platforms like Netflix, Disney, HBO outnumber us, ”he assured.

The director of Telefónica insists that the telecommunications market, both in Spain and in Europe, is something else. “This is no longer a telecommunications network, this is a super computer that opens a new world to the web3. It is the confluence of the world of artificial intelligence, the world of networks, blockchain, and a massive decentralization of the network in which there is room for many things.”

On the other hand, Pallete is confident that this new position in Europe, open to regulatory changes, will have an impact on the resolution of the merger between Orange and MásMóvil. “It must be approved with very low remedies or without them.” It is the way that Europe has to define a new regulatory context, which gives it the ability to compete with other areas of the world.