Paris, October 5, 2004
In order to define sector regulation for the forthcoming years, ART is currently analysing the functioning and possible dysfunctions of the wholesale and retail broadband markets.
On June 23, 2004, ART published its analysis of broadband markets, i.e. the - wholesale unbundled access market (market 11) and the wholesale bitstream access market (market 12), after having scrutinized the retail market in conformance with the EC recommendation. On top of these two markets, ART proposed to identify as relevant the wholesale DSL offers delivered at the national level. These three wholesale markets correspond with options 1, 3 and 5 of the previous regulatory framework.
Operators were requested to submit their comments on this analysis before August 9, 2004. Twenty-four players have sent a contribution to ART.
- At this point, in view of these contributions, ART concludes that :
- ex ante regulation on the retail broadband market is not required;
- the wholesale unbundled access market is a relevant market on which France Telecom has a significant power;
- the wholesale bitstream access market delivered at the regional level is a relevant market on which France Telecom has a significant power.
ART requested the opinion of the French Competition Authority on these two markets, in accordance with article L. 37-1 of the Post and Electronic Communications Code. These two documents, a summary of the public consultation and all the contributions not covered by business secrecy are published on ART website.
- Regarding the wholesale broadband market delivered at the national level, ART identifies France Telecom as having significant power and proposes a lighter regulation framework for 2005, maintaining the obligations of transparency and non-discrimination, but removing the current pricing control.
Contributions regarding this market were very contrasted. Some requested a strengthening of the regulation on the market, due to the re-integration of Wanadoo within France Telecom. Others proposed to include in the market guaranteed bitrate offers delivered at the national level. In an additional contribution recently received by ART, France Telecom considered that :
- the broadband lines it provides for its own use should be excluded from the market delimitation and should not be taken into account for the analysis of SMP;
- its market share at year end 2004 would be significantly less than 50% at the national level (i.e. extra-group transactions), and that, as a result, ART cannot identify France Telecom as having significant power on this market.
In order to maintain transparency on the process of market analysis, ART invites involved players to submit an additional contribution regarding the wholesale broadband resale national market by October15, 2004. In light of these contributions, ART will define its position on the delimitation of the relevant market and on the possible designation of France Telecom as operator having significant market power. The opinion of the French competition authority could be requested further on this point, before the end of October.
After having received the opinion from the French competition authority, ART will submit its proposal to the European Commission. Then, ART will take the decisions establishing the perimeter of the regulated markets, the dominant operator on these markets and the obligations imposed on this operator.
Linked documents
The summary of the public consultation (pdf - 346KB) 
The reponses of players :
Players | To donwload |
| AF Consultant - AFORST - Association des utilisateurs de Free | |
| BT France - Cegetel - Colt - Communauté de communes du Pays de Gex - Conseil Régional de la Réunion - FLORESS - France Télécom | |
| Free - Inter PC - IS Production - MCI France - NC Numéricâble - Neuf Telecom - SIPPEREC | |
| Syndicat d'aménagement des Baronnies - Tele 2 France - Telecom Italia France - Tiscali - UPC Broadband France - Tele 2 |
The additional documents for the public consultation on the wholesale national offer market : - Market of Detail (pdf - 791KB) - Market n° 11 (pdf - 251KB) - Market n° 12 (pdf - 563KB)