Spanish incumbent Telefonica has suggested that European regulators should move towards a model whereby alternative carriers wholesaling the telecoms services of incumbents and other operators must eventually have their own networks and can no longer act as resellers. Telefonica goes as far as to hint that unbundlers should ultimately be prevented from having access to incumbents' local loops. The current regulatory regime is hindering innovation and investment in new infrastructure and technology, says the operator. Telefonica indicates that there is currently little incentive for resellers to invest in more advanced networks and services because they are able to make a quick, risk-free profit without any outlay if they piggyback on other operators' networks. This penalises operators that do invest in their own networks, says Telefonica. In Spain, the operator has therefore called for a deadline by which resellers must have their own infrastructure in place. Telefonica also says the current unbundling model is not helping to fuel innovation, pointing to "more advanced and innovative" markets such as the US, Japan, South Korea and Hong Kong, which are not centred on unbundling.
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