ARCEP launches a public consultation on its draft analysis of the market for fixed and mobile voice call and SMS termination in Metropolitan France and the overseas territories, from 2014 to 2017

Paris, 12 September 2014

After having held a first consultation in 2013, and solicited the opinion of the French Competition authority, today ARCEP is launching a new public consultation on its draft analysis of the market for fixed and mobile voice call and SMS termination in Metropolitan France and the overseas territories, from 2014 to 2017, which includes the proposed pricing framework. The consultation will run to 12 October 2014. This draft analysis will then be notified to the European Commission, with the final decision due to be adopted before the end of the year.

The call termination (CT) rate is the fee that Operator A pays Operator B when one of Operator A's customers calls one of Operator B's customers. It pays Operator B for the cost of relaying the call on its network.

ARCEP regulation has enabled unlimited calling and SMS in operators' fixed and mobile plans

In effect since 2002, maximum call termination rates have enabled the development of plans that include unlimited calling and texting. The 2011-2013 regulatory pricing period provided the opportunity to complete the process of decreasing fixed and mobile CT rates down to target incremental cost levels, which is the right pricing level for this service. In doing so, it made it possible to include unlimited calling and SMS in most mobile plans, and in most of landline carriers' IP box plans.

The central aim of the 2014-2017 regulatory period is to consolidate the newly acquired status quo. ARCEP considers a moderate change in maximum fixed and mobile voice call termination rates to be justified. It will nevertheless make it possible to reflect the overriding trend of decreased costs that has been observed in the results of fixed and mobile operators' cost models.

The same maximum CT rates in French overseas markets

To promote the conditions that will ensure fair and balanced trade between the regions, ARCEP is proposing a similar maximum termination rate for Metropolitan France and the French overseas territories - thus finishing to close the gap between voice call and SMS termination rates in mainland France and the French overseas markets. Operators will be able to continue to develop plans that include calls between Metropolitan and overseas France.

Maximum termination rates for Metropolitan France and the French overseas territories will thus be as follows:

Stakeholders are invited to send their feedback on the draft analysis to ARCEP before 12 October 2014.