Spain watchdog hopes for broadband deal with Brussels

MADRID, Nov 18 (Reuters) - Spain's telecoms regulator said on Tuesday it was in talks with the European Commission over regulation of broadband Internet services.

"We don't have insoluble differences. We are discussing all this material with them", the chairman of the CMT, Reinaldo Rodriguez, told journalists on the sidelines of a telecoms seminar in Madrid.

The European Commission had warned the CMT on Friday over its plans to not oblige ex-state monopoly Telefonica (TEF.MC) to offer rivals wholesale Internet through its new high-speed network at regulated prices. [ID:nBRU006987]

Previously Telefonica had to provide a wholesale ADSL Internet service to its competitors in Spain at a regulated price. But the CMT decided not to oblige Telefonica to share its new network with competitors after the dominant operator argued such regulation would be a disincentive to investment.

"It surprised us a bit (the letter from the Commission) because we were not expecting that there were big differences over the Commission's recommendations, but well, we are talking," Rodriguez said. "The matters are relatively technical."

Last year the Commission fined Telefonica some 150 million euros ($189.4 million) for overcharging rivals to rent its ADSL network. Telefonica has appealed against the fine, saying it was based on a series of economic and legal errors. (Reporting by Robert Hetz; Writing by Sarah Morris; Editing by David Holmes)