Although digital communications in Spain is still confined to Telefonica de Espana SA’s Ibercom 64Kbps circuit-switched network, companies are starting to see the possibilities of selling digital equipment from 1990 following the European Commission’s liberalisation directive. At present, equipment still needs to be connected to the analogue communications network but the liberalisation of systems in the Spanish market is now bringing into question the survival of the Ibercom service. Furthermore, the European Community hopes to see Integrated Services Digital Networking coming into service across Europe by 1992, with a one year moratorium period for countries still needing to modernise their communications infrastructure. Telecommunications companies based in Spain have criticised Telefonica and the General Telecommunications Board for not acting fast enough regarding plans for ISDN implementation in Spain, thus hindering the development of the telecommunications market. The main criticism is directed at Telefonica and its Ibercom service which still monopolises parts of the market that have nominally been liberalised. Telefonica claims, however, that the Ibercom service was created for the purpose of offering the corporate and institutional world an advance on the future ISDN, and adds that it has never been used to slow down the introduction of ISDN in Spain. The main problem, however, is not the existence of Ibercom, but the fact that multinationals cannot sell their digital equipment in Spain until the law is changed in 1991. The limited market affects mainly manufacturers making analogue telecommunications equipment in Spain – considered obsolete in many European countries. Therefore, manufacturers such as Siemens AG, which produces analogue equipment only in Spain and offers its Hicom digital PABXs in other markets, face reduced demand and limited export prospects. However, the European Commission demands that the sale of digital PABXs must be liberalised by 1990 except for connection to analogue networks, so that the liberalised sector will install only digital exchanges. This will be the first step towards ISDN and, according to various suppliers, will mark the beginning of the end for Ibercom unless it adapts its specifications to the European Commission’s requirements.
