ARCEP sets the final net cost of universal service for the year 2003 and operators’ contributions

Paris, 22 June 2005

<font>For the second consecutive year, ARCEP calculated the final net cost of universal service obligations according to both the new regulatory framework introduced by the December 21<sup>st</sup> 2003 law published in the January 1<sup>st</sup> 2004 <em>Journal officiel</em> transposing the directive 2002/22/EC of the European Parliament and of the Council dated March&nbsp;7<sup>th</sup> 2002 concerning universal service obligations and users’ rights with respect to electronics communications networks and services, and to its decree no.&nbsp;2004-1222 dated November&nbsp;17<sup>th</sup> 2004 which defines the conditions for applying this new measure.</font>


<font>From April 29<sup>th</sup> to May&nbsp;20<sup>th</sup> 2005, ARCEP held a public consultation on the draft rules for the implementation of articles R.&nbsp;20-33 to R.&nbsp;20-39 of the Post and Electronic Communications Code. In its decision no.&nbsp;05-0426 dated May&nbsp;26<sup>th</sup> 2005, ARCEP adopted the rules for calculating the final cost for 2003 and in its decision no.&nbsp;05-0231 of March&nbsp;17<sup>th</sup> 2005, ARCEP set at 10.8% the final value of the capital return rate applied for 2003.</font>


<font>On these bases, in its decision no.&nbsp;05-0472 dated June&nbsp;21<sup>st</sup> 2005, ARCEP evaluated the net cost of universal service obligations at €53.271 million for 2003, after deducting immaterial advantages. This amount corresponds to:</font>

  • <font>€76.885 million for geographic averaging obligations</font>
  • <font>plus €36.814 million for welfare expenses</font>
  • <font>plus €23.549 million for operation of public telephone boxes installed on public property</font>
  • <font>minus €84.007 million for immaterial advantages, deducted from the cost of universal service, all components combined</font>
  • <font>plus €0.029 million for universal service fund management expenses</font>



<font>ARCEP will notify operators of the amount of their contribution upon publication of decision no.&nbsp;05-0472 in the <em>Journal officiel</em>.</font>