Banco Sabadell | According to industry sources, the content of the Digital Network Act proposal presented last week by the EC has disappointed the main operators. Specifically, they have expressed their disappointment at the lack of strong measures to facilitate mergers and consolidation, which was one of the sector’s most pressing demands.
Assessment: Negative news (last week there was news to the contrary), with limited impact, as the EC’s proposal will have to be negotiated in the coming months with member countries and the European Parliament, leaving room for improvements. We would point out that this aspect of the regulation is very important for Telefónica from a strategic point of view, as its ambition for the coming years is to strengthen its competitive position in its core markets (Spain, the United Kingdom, Germany and Brazil) in order to improve profitability.
