There are at least seven national providers (plus a few regional ones) of fixed-line telephone services in Spain. Telefónica, the former state-owned monopoly dominates with 87% of market share.
Many people stay with Telefónica out of inertia and confusion about the complicated tariff system - even though they might be able to save money by switching to an alternate provider.
Competition has intensified over recent years as companies have - mostly without success - tried to chip away at Telefónica's monopoly. Given the large variety of plans from the different providers, they are difficult to compare here. To work out what is the best deal for you, consider how much and where you you will be calling and then shop around. Some providers offer flat rate charges ( tarifas planas), which are useful if you plan on doing a lot of talking.
There are providers that offer discounted indirect phone access through four-digit dialling prefixes (10XX). You just dial the prefix before every call in order to get their rates. If you forget to dial it, you'll simply be billed at normal Telefónica rates. In case you are too forgetful (or lazy) to dial a prefix, some of these firms now providing an automatic pre-dialling service ( marcación automática) to do it for you.
There are a couple of things to remember about indirect access providers. First, Telefónica must install and operate your telephone line, as they are currently the only company required by law to open up their network to competition. If you sign up with another provider for your phone line they may not allow you to use these indirect services. Secondly, Telefónica will still bill you for your basic service.
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