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Spain introduces tax on OTT communications in new Telecommunications Act

The revised legislation implements the new European Electronic Communications Code, including additional measures for consumer protection.

OTT communications providers will be considered as operators: On 11 September 2020, the Ministry of Economy and Digital Transformation published a draft of the revised Telecommunications Act, through which the Spanish Government will implement the European Electronic Communications Code, due to come into force on 20 December 2020. The law will define services that are not based on numbering, such as WhatsApp or Skype, as electronic communications services. These providers will have to register as telecommunications operators, and will be subject to taxation in the same way as traditional operators if their annual revenue exceeds €1m. The tax will not exceed 0.01% of the company’s gross revenue.

A revised USO for broadband: The Act will change the Universal Service Obligation related to broadband, currently set at 1Mbps. Under the new USO, broadband connections will have to enable a range of applications, such as calls and video calls in standard quality, online banking, social networks, and e-commerce. A Government Decree will establish the minimum speed of the broadband USO at a later stage.

New rules on bundles: Bundles of services will also now be regulated, so that customers can opt out of an entire bundle in certain circumstances. The provision of any additional services will not be able to extend the length of the original contract, unless the customer explicitly agrees when signing up for the additional service.