Market analysis

ARCEP submits an appraisal of fixed broadband and superfast broadband market regulation, along with a development outlook for mid-2014 to mid-2014, to public consultation

Paris, 4 July 2013

ARCEP is kicking off a review of our analyses of fixed broadband and superfast broadband markets by submitting a document that contains an assessment of current regulation and possible pathways for development from mid-2014 to mid-2017, to public consultation.

Market analysis decisions are the foundation of asymmetrical sectoral regulation. They define the obligations imposed on the operator that enjoys significant power (SMP) in the markets in question and allow, for instance, other operators to have access to essential wholesale products that enable them to provide competitive retail market solutions. These decisions have a lifespan of three years.

This current review covers all three fixed broadband and superfast markets for the first time, namely:

- the market for wholesale (physical) network infrastructure access (including shared or fully unbundled access) at a fixed location (market 4);
- the market for non-physical or virtual network access including 'bitstream' access at a fixed location (market 5);
- the capacity services market (market 6).

In accordance with the conclusions of the rendez-vous clause, set midway through the round of analysis for fixed broadband and superfast broadband markets covering 2011-2014, the document being submitted to consultation also includes an assessment of the symmetrical regulation that applies to fibre-to-the-home (FTTH) networks, and examines proposed changes.

This "scorecard and outlook" thus covers all regulated wholesale solutions that are covered by symmetrical and asymmetrical regulation, and which make it possible to create fixed broadband and superfast broadband retail offers, aimed at the residential and enterprise markets: i.e. LLU, wholesale FTTH solutions, sub-loop unbundling, bitstream, access to civil engineering, backhaul, capacity services, etc. The purpose of this exhaustive analysis is to strengthen the consistency of the sector's regulation: between residential and enterprise markets on the one hand, and between symmetrical and asymmetrical regulation on the other. It also examines a possible link between shared optical fibre local loops, which currently deliver FTTH services, and dedicated optical fibre local loops, which currently deliver FTTO services, to meet the specific needs of businesses.

The review process will run until mid-2014, and will conclude with the adoption of new analysis decisions for markets 4, 5 and 6.

The public consultation will run until 16 September 2013.