Mobiles

On January 1st, 2006, ARCEP’s decisions on the multi-year decrease in mobile call termination will bring about a further retail price decrease for fixed-mobile calls in Metropolitan France and in the Overseas Departments

Paris, 13 December 2005

ARCEP imposes a decrease in wholesale tariffs on mobile operators

Following its market analysis of call termination on the networks of mobile operators in Metropolitan France and the Overseas Departments, ARCEP required that operators orient their mobile termination rate to costs, and imposed a price-cap of these tariffs for 2005 and 2006. This concerned all three mobile network operators in Metropolitan France for 2004 and the two major overseas mobile operators in early 2005.

In Metropolitan France

Orange France, SFR and Bouygues Telecom will lower their wholesale tariffs by 24% on 1st January 2006.

 

Mobile termination rate for calls originated in France
Average price in €c/min excluding VAT *

 

2004

2005

2006

Orange France/SFR

14.94

12.50

9.50

Bouygues Telecom

17.89

14.79

11.24

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(*) consumption profile 75% in peak times and 25% in off-peak times for the "intra-interconnection area" service

NB: Due to its later entry on the market Bouygues Telecom’s tariffs are higher because this operator's economies of scale are lower than its competitors, Orange France and SFR.

This decrease will represent over €900 million in 2006, of which approximately 40% is yielded by fixed-mobile traffic. Gains for consumers calling from a fixed line, whether residential or business, will be over €350 million for the year.

A third decrease is already planned for 1st January 2007; its level will be defined in 2006.

In Overseas Departments

On 1st January 2006, the two largest operators, Orange Caraïbe in the Antilles and SRR in Réunion (which control 79% and 70% of retail market share, respectively), will decrease their wholesale prices by 20%.

 

Mobile Termination Rate
Estimated average price in c€/min excluding VAT (*)

 

2004

2005

2006

2007

SRR

24.56

19.65

15.72

12.58

Orange Caraïbe

25.69

20.56

16.44

13.16

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(*) consumption profile 75% in peak times and 25% in off-peak times (excluding primary digital block)

For other smaller operators, ARCEP has imposed a non- excessive wholesale price obligation, with regards to their costs and effects on the market. This obligation will have the same effect of decreasing retail prices.

France Telecom’s retail prices to drop by 16%

On 1st December, ARCEP issued a favourable opinion of France Telecom’s price decision which will lead to a 16% reduction in base tariffs for consumers for calls to mobiles in Metropolitan France, and a 18% decrease to overseas mobile networks.

ARCEP welcomes the fact that France Telecom has entirely passed on the fall in wholesale prices to retail tariffs.