ART rules on carriage offers between La Réunion and Metropolitan France

Paris, 12 May 2004

In January 2004, the Conseil Régional de la Réunion and the companies Mobius and Outremer Télécom requested that Autorité de régulation des télécommunications (ART) rule on three disputes regarding traffic routing conditions between Metropolitan France and La Réunion.

The disputes dealt with access to carriage capacities between La Réunion and Metropolitan France, using submarine cables operated by France Telecom. Until now, local operators have not had access to a major carriage offer suited to their needs, which would allow them to develop attractive Internet access offers.

After examining the elements submitted by the parties, in particular concerning the costs of using the SAT3/WASC/SAFE submarine cable, ART asks France Telecom, in its decisions nos. 04-375 and 04-376, to provide the operators with a carriage leased line offer between La Réunion and Metropolitan France, at a cost of €1.550 per Mbit/s per month, as well as an IP transport offer specifically suited to the needs of Internet access providers, at a lower cost than the leased line service.

This decision will significantly lower the carriage costs between Metropolitan France and La Réunion, which should encourage the development of local competition and lead to a decrease in retail Internet access prices. These elements should contribute to a broader diffusion of information technologies in La Réunion.