The electronic communications regulator has proposed, on June 21, "relief of the regulation of retail with a removal of the requirement of prior approval of rates of France Telecom" and favours an "incitement to the deployment of fibre optic networks" in not imposing duty of orientation towards costs terminal segment of more than 10 large offerings Mbps fiber-optic. This analysis of the market for so-called services of "capacity" for companies, notified to the European Commission, is subject to public consultation until 21 July (1) - before entering into force on the re-entry and until September 1, 2009.
Pairs of copper versus optical fiber
This market consists of leased links, Ethernet or ATM (2), point to point or multi-point interface, but is not of type VPN virtual private networks (3), data (Frame Relay or X 25) services, or even physical support services. Arcep has undertaken to cut the market in two, as the flows are less than or greater than 10 Mbps, proposing to "impose on the two different segments regulation based on the wholesale market". Less than 10 Mbps segment, constituted mainly by the incumbent's copper pair local loop, it is imposed the duty of orientation towards the costs. On the segment greater than 10 Mbps, who primarily use the historical operator optical fibre network, it is not imposed duty of reflection of costs or obligation not to excessive rates. "To promote the deployment of infrastructure in fibre optic of operators, historical and alternative flows large benefits greater than 10 Mbps (mostly using infrastructure in fibre) are therefore exempt from tariff control, with the exception of the prohibition not to predatory fares", indicates the Arcep. What satisfy France Telecom in its request for regulatory relief to not annoy its investment in its network of optical fibre (4). To justify this dichotomy, the analysis shows that there is a "small discontinuity in the substitutability in flow (...)". "with polarization of operators or services less than 10 Mbps, or on more than 10 Mbps services". The supply is also found "a relative break of substitutability to 10 Mbit/s, corresponding to the transition from copper to fiber optics". On the retail market, it also has a relief of the regulation by the lifting of tariff approval for the benefit of obligations "more light" (non-discrimination, prohibition of eviction rates and accounting services and activities). From data published by the Arcep, the retail market capacity business services weighs in France 649 million euros in 2005. According to estimates of the letter of telecommunications for the last year, less than 10 Mbps services represent about 75 of this market - or some 487 million euros. In the services of more than 10 Mbps, the remaining 25, they account for some 162 million euros. In terms of market share of retail business, it is apparent that France Telecom holds 83 at end 2005 and "enjoys the benefits of the precursor.
Avoiding obsolete analysis
The wholesale market, it is estimated by Arcep EUR 221 million in 2005. If you exclude the services sold by the operator in its subsidiaries (Transpac and Orange), France Telecom there holds 79.3 of market share in late 2005. Although the regulatory authority has decided to apply a "differentiated regulation" in this capacity services wholesale market, it had however renounce set two relevant markets based on the services of more or less 10 Mbps. It is the Council of competition that has applied in its opinion delivered on 12 may (5). "The prospective nature of the analysis of markets (...)". "and the rapid technological developments in the sector of electronic communications may make a delineation of markets based on a too detailed segmentation quickly obsolete and unnecessarily create effects of thresholds at the borders of these markets," estimated the wise men of the street of the scale by asking the Arcep do not distinguish the services of more than 10 Mbps compared with less than 10 Mbps. The regulator took into account that opinion, so that its prospective analysis becomes not obsolete and the principle of technological neutrality is respected.
Local loop: 28 Mds
Euro (s) new!
But relying on the European recommendation of 11 February 2003 on the relevant markets susceptible to ex ante (6) Regulation, the competition Council recognizes however the Arcep "the right to impose different obligations on certain types of offers within a market," in order to "take into account the different circumstances in which is located France Telecom to its local loop copper pairs built and profitable at the time of the monopoly".on the one hand, and capillary infrastructure in fibre optic deployed in
The electronic communications regulator has proposed, on June 21, "relief of the regulation of retail with a removal of the requirement of prior approval of rates of France Telecom" and favours an "incitement to the deployment of fibre optic networks" in not imposing duty of orientation towards costs terminal segment of more than 10 large offerings Mbps fiber-optic. This analysis of the market for so-called services of "capacity" for companies, notified to the European Commission, is subject to public consultation until 21 July (1) - before entering into force on the re-entry and until September 1, 2009.
Pairs of copper versus optical fiber
This market consists of leased links, Ethernet or ATM (2), point to point or multi-point interface, but is not of type VPN virtual private networks (3), data (Frame Relay or X 25) services, or even physical support services. Arcep has undertaken to cut the market in two, as the flows are less than or greater than 10 Mbps, proposing to "impose on the two different segments regulation based on the wholesale market". Less than 10 Mbps segment, constituted mainly by the incumbent's copper pair local loop, it is imposed the duty of orientation towards the costs. On the segment greater than 10 Mbps, who primarily use the historical operator optical fibre network, it is not imposed duty of reflection of costs or obligation not to excessive rates. "To promote the deployment of infrastructure in fibre optic of operators, historical and alternative flows large benefits greater than 10 Mbps (mostly using infrastructure in fibre) are therefore exempt from tariff control, with the exception of the prohibition not to predatory fares", indicates the Arcep. What satisfy France Telecom in its request for regulatory relief to not annoy its investment in its network of optical fibre (4). To justify this dichotomy, the analysis shows that there is a "small discontinuity in the substitutability in flow (...)". "with polarization of operators or services less than 10 Mbps, or on more than 10 Mbps services". The supply is also found "a relative break of substitutability to 10 Mbit/s, corresponding to the transition from copper to fiber optics". On the retail market, it also has a relief of the regulation by the lifting of tariff approval for the benefit of obligations "more light" (non-discrimination, prohibition of eviction rates and accounting services and activities). From data published by the Arcep, the retail market capacity business services weighs in France 649 million euros in 2005. According to estimates of the letter of telecommunications for the last year, less than 10 Mbps services represent about 75 of this market - or some 487 million euros. In the services of more than 10 Mbps, the remaining 25, they account for some 162 million euros. In terms of market share of retail business, it is apparent that France Telecom holds 83 at end 2005 and "enjoys the benefits of the precursor.
Avoiding obsolete analysis
The wholesale market, it is estimated by Arcep EUR 221 million in 2005. If you exclude the services sold by the operator in its subsidiaries (Transpac and Orange), France Telecom there holds 79.3 of market share in late 2005. Although the regulatory authority has decided to apply a "differentiated regulation" in this capacity services wholesale market, it had however renounce set two relevant markets based on the services of more or less 10 Mbps. It is the Council of competition that has applied in its opinion delivered on 12 may (5). "The prospective nature of the analysis of markets (...)". "and the rapid technological developments in the sector of electronic communications may make a delineation of markets based on a too detailed segmentation quickly obsolete and unnecessarily create effects of thresholds at the borders of these markets," estimated the wise men of the street of the scale by asking the Arcep do not distinguish the services of more than 10 Mbps compared with less than 10 Mbps. The regulator took into account that opinion, so that its prospective analysis becomes not obsolete and the principle of technological neutrality is respected.
Local loop: 28 Mds
Euro (s) new!
But relying on the European recommendation of 11 February 2003 on the relevant markets susceptible to ex ante (6) Regulation, the competition Council recognizes however the Arcep "the right to impose different obligations on certain types of offers within a market," in order to "take into account the different circumstances in which is located France Telecom to its local loop copper pairs built and profitable at the time of the monopoly".on the one hand, and capillary infrastructure in fibre optic deployed in
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