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Viewing cable 07PARIS2, French telecom officials discuss next generation network
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
07PARIS2 | 2007-01-03 05:56 | 2011-08-24 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Paris |
VZCZCXRO7641
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHFR #0002/01 0030556
ZNR UUUUU ZZH
R 030556Z JAN 07
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 3979
INFO RUCPDOC/USDOC WASHDC
RUEAFCC/FCC WASHDC
RUEAWJA/DEPARTMENT OF JUSTICE WASHDC
RUCNMEM/EU MEMBER STATES
UNCLAS SECTION 01 OF 03 PARIS 000002
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/CIP TFINTON, EUR/WE JLARREA, AND EUR/ERA DLIPPEAT
USDOC FOR NTIA CSPECK AND ITA JBURTON
STATE PASS FTC FOR SMCDONALD AND HSTEVENSON
FCC FOR INTERNATIONAL TWEISLER
STATE PLEASE PASS TO USTR JMCHALE/KSCHAGRIN
JUSTICE FOR KWILLNER
BRUSSELS FOR JUNDERWOOD
E.O. 12958: N/A
TAGS: ECPS ETRD FR
SUBJECT: French telecom officials discuss next generation network
regulation, spectrum management and customer service
REF: Paris 7728
Summary
-------
¶1. (SBU) French telecom regulator ARCEP is using persuasion to
cajole telecommunications operators that are constructing next
generation fiber optic telecom networks to rent their infrastructure
to competitors ("unbundle the local loop"). While historic operator
France Telecom is resisting, their competitor, the Iliad Group, has
offered to do so. The Senate has amended a bill providing for the
conversion of television from analog to digital. Rather than ARCEP
and the broadcast regulator deciding how to reuse the spectrum
formerly earmarked for analog television, a parliamentary-led group
would do so. The National Assembly must agree before this change is
made permanent. The GOF is considering a law that would facilitate
class action lawsuits in the telecom sector, as well as eliminate
charges consumers pay while waiting for telecom customer service
representatives to answer the phone. End summary.
¶2. (U) On December 13, 2006 Embassy econoff met French Electronic
Communications and Postal Regulator ARCEP European Regulatory
Framework Implementation General Directorate Aurelie Doutriaux,
International Division Director Anne Lenfant, and International
Division Deputy Director Joel Voisin-Ratelle. ARCEP officials
discussed the deployment of next generation high-speed optical fiber
networks, the upcoming changes in French spectrum management, and
consumer protection.
Next generation networks: the infrastructure challenge
--------------------------------------------- ---------
¶3. (SBU) Doutriaux, the highest ARCEP official present, set the
scene by describing ARCEP's approach to regulation of next
generation networks. ARCEP had called for operators to cooperate
and share the burden of investing in fiber access networks. She
pointed us to a speech delivered at the IDATE (Institut de
l'Audiovisuel et des Telecommunications en Europe) Conference on
November 16 by ARCEP Chairman Paul Champsaur, in which he estimated
the cost of a national roll-out of such a network at "several tens
of billions of euros" over a decade. As a solution, ARCEP would
encourage the pooling of civil engineering infrastructure work and
of the cabling of buildings. To promote this policy, ARCEP is part
of a working group that the ministries of industry and housing
established, which also includes telecommunications operators and
property management representatives.
Next generation networks: the competition challenge
--------------------------------------------- ------
¶4. (SBU) At the same time, Doutriaux stressed that ARCEP's
preference is for fiber networks that are open to alternative
operators (point-to-point access) to prevent monopolies. To that
effect, ARCEP, in June 2005, established the Public Initiatives
Networks Committee (French acronym CRIP), a consultative body of
local authorities and network operators to make proposals on "how to
combine the quick extension of fiber and preserve the future of
competition." Through increased dialogue between local network
operators and local authorities, ARCEP hopes to avoid the regulatory
problems that have surrounded the plans of Deutsche Telekom (DT) to
exclude competitors from its fiber networks on grounds that DT
should be allowed to recoup its 3 billion euro investment.
¶5. (SBU) So far, only the Illiad Group, owner of telecom operator
FREE, has announced that its fiber infrastructure would be open to
alternative operators on a wholesale basis. Doutriaux noted that
Illiad chose to allow other operators to use its fiber network
without any pressure from ARCEP. Illiad will be offering high-speed
broadband over its own fiber optic network in Paris starting in the
first half of 2007. (Free already operates a 20 MB ADSL service
throughout most large French metropolitan areas.) Free announced
that it would spend one billion euros between 2008 and 2012 to
construct a fiber optic network in France.
¶6. (SBU) France Telecom (FT), on the other hand, has been very
cautious about very high broadband development, Doutriaux continued,
and is not making its network available to competitors, opting
instead for a Passive Optical Network (PON), which allows no
unbundling. FT launched a pilot project in certain areas of Paris
last July reaching 500 customers and plans to deploy its fiber
network by March 2007 in Paris. By June 2007, it plans to start
PARIS 00000002 002 OF 003
high broadband service in Lille, Lyon, Marseille, Poitiers, and
Toulouse. It is aiming to have 150,000 to 200,000 clients by the
end of 2008. (Note: ARCEP announced on December 19 that it would
initiate a "administrative inquiry" to clarify why FT did not plan
to offer unbundling. Additionally, cable operator Noos announced in
December that it will offer 100 MB internet service over its cable
infrastructure. New fiber optic telecom operator Erenis also
announced that it aims to service 150,000 households by the end of
¶2007. End note.)
Next generation networks: the revenues challenge
--------------------------------------------- ---
¶6. (SBU) Lenfant said that deploying very high-speed networks was
only justified if they supported new applications, service
offerings, and access to content. In that perspective, the current
relationship between content publishers and networks would need to
change, Lenfant noted. Some of the revenues earned by service
providers would go to access providers, and electronic
communications operators would help finance the content's creation,
and audiovisual content in particular.
¶7. (SBU) To finance this "new model," ARCEP is discussing the
extension to Internet access providers of the tax that France-based
television stations pay to support new content production, provide
grants and subsidies to French films and producers of audiovisual
works, and contribute to the production of high-definition and
mobile-television formats (French acronym COSIP tax). However,
those in ARCEP supporting the extension of the COSIP tax to telecom
operators would support doing so on the condition that "all
operators have access to all content."
Spectrum management after the switch to digital
--------------------------------------------- --
¶8. (SBU) Lenfant and Doutriaux said that the Senate had changed the
GOF draft bill mandating the conversion from analog to digital
television (reftel) by 2011. The bill originally specified that
ARCEP and audiovisual regulator Conseil Superieur de l'Audiovisuel
(CSA) would manage the spectrum freed up by the switch by 2011 from
analog to digital television. During its review of the bill, the
Senate adopted an amendment that established a new "Commission on
the Digital Dividend," which would include the ARCEP and CSA
Chairmen, as well as the National Frequency Agency (NFA) Director
General. This Commission would also include eight French
Parliamentarians, with one of them presiding. If approved by the
National Assembly during its review of the draft bill, this new
commission will decide how to reallocate the freed up spectrum.
Consumer Protection
-------------------
¶9. (SBU) Although France has healthy competition in its telecom
sector, its Achilles heal is its poor customer service. Frustrated
customers have launched a plethora of lawsuits seeking compensation
for services that do not work. Econoff asked whether ARCEP plans to
address this issue with a customer service complaint website or any
publicly available statistics to shame operators into improving
their service. Lenfant and Doutriaux explained that, unlike the
FCC, ARCEP does not have any competency in consumer protection
matters but is consulted on consumer issues affecting the telecoms
and electronics sectors. Last summer, the French Government
consulted ARCEP on its draft bill on consumer protection, which
contains one important provision concerning electronic commerce.
Presently, consumers of French telecom services pay for customer
assistance calls to all telecom operators (usually about 0.12
euros/minute). The waiting time to all operators, including FT, is
quite substantial; more than 30 minutes of waiting time is common
place. The GOF-draft bill proposes that the waiting period during
such calls be free of charge, although consumers would still pay for
the call once connected to the customer assistance service.
¶10. (SBU) More generally, the draft bill aims to introduce class
action lawsuits in the French legal system. Lefant pointed out that
the telecom sector needed class action lawsuits to decrease the
number of cases clogging the French court system. She noted that
last October, the French consumer association "Que Choisir" filed
not one but 12,530 requests for damages against three mobile phone
companies accused of illegal collusive behavior, requesting a total
PARIS 00000002 003 OF 003
of only 750,000 Euros. The consumer association succeeded in making
its case for a collective legal remedy. However, it is far from
certain that the bill will get through Parliament before the end of
the session in February 2007. Parliamentary debate is to start in
late January or early February, and there are many more GOF bills to
be discussed during that time.
Hofmann