ART determines the final net cost of universal service for the year 2002 and establishes operators’ contributions

Paris, 4 January 2005

The regulatory modifications related to the transposition of directive 2002/22/EC of the European Parliament and Council of 7 March 2002 concerning universal service and users’ rights regarding electronic communications networks and services are integrated in law no. 2003-1365, dated 31 December 2003, published in the Journal officiel of 1^st January 2004.

The conditions for applying this new measure are established in decree no. 2004-1222 dated 17 November 2004, modifying articles R.20-33 to R.20-39 of the Post and Electronic Communications Code with respect to the methods used to calculate the net cost of the universal service obligation. In particular, the cost of geographic deaveraging is limited to the cost of unprofitable areas.

Following a public consultation held from 2^nd to 10^th December 2004, on the draft rules for applying these articles, ART adopted the rules for calculating the final cost for 2002 in its decision no. 04-1066 of 15 December 2004. The same day, ART set the final value for return on capital at 12% in decision no. 04-1067.

Based on these elements, ART evaluated the net cost of the universal service obligation at €124.989 million for the year 2002, after deducting intangible advantages, in decision no. 04-1068 of 21 December 2004. This amount includes:

• €164.06 million for geographic deaveraging

 

• €35.676 million for welfare costs

 

• €20.927 million for public telephone boxes installed on publicly owned land

 

• minus €95.674 million for intangible advantages, all components combined.

 

Amounts for previous years were similar: €128.7 million for 2000 and €142.1 million for 2001.

The year 2002 is the first year the new allocation key between contributors has been used: from now on, operators’ contributions to the financing of universal service will be proportionate to their turnover. This ensures better financing and a fairer allocation of universal service charges. For 2002, contribution is approximately 0.41% of turnover.

ART will inform operators of the amount of their contribution upon the publication of decision no. 04-1068 in the Journal officiel.