Report on ONO Midco, SAU and its subsidiaries as of December 31 ...

Telecommunications Law, the MIET has certain additional powers to impose new obligations to operators to guarantee services
interoperability, to ensure the integrity of the networks, to manage the radio spectrum or to guarantee user´s rights. It has to
promoted use of standards and technical specifications and it also holds powers of inspection on CMT issues.
An additional independent oversight body, the CMT, was created in 1996. The CMT supervises electronic
communications operators in Spain. Audiovisual communication services in Spain will be supervised by the new regulator
organism said above whose constitution is pending. In the meantime the MIET through SETSI is the supervisory authority (for a
further discussion on the audiovisual media national regulatory authorities, please see “—Regulation of Audiovisual
Communication Services” below).
The CMT carries out reviews of markets identified by the 2007 Market Recommendation as susceptible to ex ante
regulation. The CMT establishes and supervises operators, promotes competition in the electronic communications and
audiovisual markets, solves conflicts between operators and (as the case may be) arbitrates operator disputes at the request of the
parties. The CMT has certain additional powers to safeguard the plurality of service offerings and to access networks and network
interconnection. The CMT also holds powers of inspection and sanction in connection with matters such as price policy, specific
market definition, declaration of SMP operators (upon whom the CMT is entitled to impose obligations) and merger control.
The authorities of the relevant autonomous Spanish communities also have certain powers over the audiovisual sector.
General Law on Telecommunications of 2003
The General Law on Telecommunications establishes the new regulatory framework for electronic communications
services in accordance with applicable EU directives. Except for certain provisions, this repealed and replaced the General Law on
Telecommunications of 1998 which liberalized the provision of telecommunications services in Spain. It is the primary legislation
governing the provision of electronic communications services and networks and transposes the European RF (see above). The
General Law on Telecommunications aims, among other things, to enhance effective competition in the telecommunications
sector, safeguard operator compliance with public service obligations (especially those related to universal service), promote
development of the telecommunications sector, ensure an efficient use of scarce resources (such as numbering and radio
spectrum), defend users’ rights and contribute to the development of the internal electronic communications market within the
EU. According to the General Law on Telecommunications, telecommunications are considered services of general interest to be
provided under free competition regardless of the fact that certain public service obligations are imposed upon the operators.
The General Law on Telecommunications grants universal rights of access to basic services and contains provisions
with which an individual or legal entity must comply in order to be considered an electronic communications operator. It governs
the privacy of communications, the protection of personal data, the configuration of networks and services, interconnection and
access, public service obligations, users’ protection, market definitions and SMP operators. Additionally, it provides rules and
procedures for the certification of devices used for providing telecommunications services.
to date:
Its provisions are implemented through several regulations. The following are the most important approved regulations
• Regulation providing the conditions necessary for electronic communications services, universal service and
user’s protection (approved by means of Royal Decree 424/2005, of April 15, as amended) (“Services
Regulation”);
• Regulation providing for conditions of electronic communication services (approved by means of Ministerial
Order ITC/912/2006, of March 29, developing Royal Decree 424/2005);
• User’s rights and premium rate service regulation (approved by Ministerial Order PRE 361/2002, of October 14,
as amended by Ministerial Order PRE 2410/2004, of July 20). In May 2009, the Spanish government approved
the user’s Rights Letters through Royal Decree 899/2009, of May 22;
• Regulation of the electronic communications market, network access and numbering (approved by means of
Royal Decree 2296/2004, of December 10, as amended) (“Markets and Access Regulation”); and
• Regulation of the use of the radio spectrum (approved by means of Royal Decree 863/2008, of May 23).
The General Law on Telecommunications establishes that the CMT will define the relevant markets (following the
European Commission’s Market Recommendation and the Guidelines), determine whether markets are competitive and, if they
are deemed not competitive, impose proportional and appropriate obligations on SMP operators.
In order to conform to the provisions of the EU Directives which were revised in December 2009 (see—Regulation of
Audiovisual Communications Services—European Union Overview), the General Law Telecommunications has been amended in
March 2012 by the RD 13/2012 whereby the 2009 Directives have been transposed.
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