ARCEP launches a public consultation on its cost model for dedicated optical local loops

Paris, 9 November 2015

On 26 June 2014 adopted Decision No. 2014-0735 on its analysis of the capacity services market (1). In its decision, ARCEP indicated that in the next 18 to 24 months, it would be introducing a cost model that makes it possible, in particular, to determine price squeeze and non-excessive pricing thresholds for those areas in France where Orange wholesale capacity services products delivered over optical fibre networks are subject to pricing supervision, referred to as FZ2, or fibre zone 2 (2).

To satisfy the objective set out in the market analysis, ARCEP therefore plans on obtaining a model that makes it possible to verify that the applicable pricing obligations are being met. The Authority is performing this work in tandem with the sector's stakeholders.

The model's structure was established by drawing on:

- a first round of bilateral meetings with enterprise market operators;

- ARCEP's experience and that of the consultant which assisted in constructing the model;

- the results of recent similar work that is underway in other European countries.

It is within this context that, today, ARCEP is launching a first public consultation on this model, to gather feedback from stakeholders. More specifically, this consultation lays out the main modelling hypotheses that have been retained, the model's overall architecture and the way in which ARCEP could utilise the findings enabled by the model.

It will be followed by a second consultation, scheduled for early 2016, on the model's parameters.

This first public consultation will run until 7 December 2015.


(1) Available for download (pdf - 1.53 Mo) (in French)
(2) In French: ZF2 = Zone Fibre 2.

Linked documents

The public consultation (pdf - 866 Ko) (pdf - in French only)