1. 0 0 Electronic Communications regulation in France Idate Montpellier-November 22th 2005 Gabrielle Gauthey-ARCEP France 8 M (Q2 2005) USA 37.9 M (fin 2004) JAPAN 20.6 M (Q2 2005) DSL : 93% Modem Cable : 6.95% Others : 0.05% DSL : 36.5% Modem Cable : 56.4% Others : 7,1% DSL : 68,4% Modem Cable : 14.9% Others : 16,71% Penetration rate : 12.1% Penetration rate : 13.5% Penetration rate : 16.3%

2. 1 1 Electronic communications regulation Broadband Markets regulation Mobile markets regulation Issues at stake for the future

3. 2 2 Broadband market –different situations- Subscribers France 8 M (Q2 2005) USA 37.9 M (end 2004) JAPAN 20.6 M (Q2 2005) DSL : 93% Modem Cable : 6.95% Others : 0.05% DSL : 36.5% Modem Cable : 56.4% Others : 7,1% DSL : 68,4% Modem Cable : 14.9% Others : 16,71% Penetration rate : 12.1% Penetration rate : 13.5% Penetration rate : 16.3%

4. 3 3 Broadband regulation in Europe In some countries, TV cable netwoks have SMP for BB internet access LLU regulation since 2000 National implementation has lead in most countries to impose bitstream access

5. 4 4 Broadband regulation in France France : no cable penetration nation wide : 8,3 mio BB subscribers (500 000 cable) Take off of competition –via bitstream access since 2003 (2005 : 1,9 mio subs.) –via shared access since 2004 (2005 : 2.151 mio subs.) –via full LLU since 2005 (2005 : 360 000 subs.) Ladder of investment theory Today’s issues –Adopt wholesale and retail QOS indicators –Geographical extension of unbundled areas

6. 5 5 VOIP/VOB regulation Distinction VOI/VOB VOB rapidly developping on the residential market : over 2 mio subscribers through triple–play offers substituability of VOB with PSTN : same terminal, similar quality  subject to symmetrical regulation (rights and obligations of all operators) VOI : no subsituability no regulation Assymmetrical regulation : no retail regulation, wholesale regulation through access regulation under surveyance

7. 6 6 Mobile Regulation Dynamic market : more mobile than wireline subscribers, increasing traffic volume ARCEP calls for more retail competition support MVNO development TV on mobile : –Frequency issue –Revision of frequency allocation rules –Value of spectrum?

8. 7 7 Issues at stake for the future FTTX : different situations in the USA, Asia, Europe –in Europe : no specific obligations so far –in France : difference between business and residential areas NGN : major operators have announced progressive NGN roll- out plans –Core network and not access yet –Will enable roll-out of new services (fix-mobile convergence, presence management..) –Which symmetrical/assymetrical obligations? Frequency planning : how to combine flexibility, competition and harmonization –Wimax (short term) –TV on mobile –Digital dividend  need of a common european vision