TELECOMMUNICATIONS -

TELECOMMUNICATIONS

The French Telecommunications
Regulatory Authority

The Telecommunications Act of 26 July 1996 recasts the regulatory framework for telecommunications in France by creating an independent authority - the Autorité de Régulation des Télécommunications (ART). ART is established on 1st January 1997 and has been entrusted with a broad scope of activities.

The Role of ART

ART is responsible for :

settling disputes arising with regard to interconnection and infrastructure sharing,
approving the interconnection reference offer for public network operators with significant market power,
allocating resources (radio frequencies and telephone numbers),
processing licence applications (in particular drafting licences for public network operators and public service providers),
authorizing establishment of independent networks (processing applications and issuing the licences),
proposing the contributions payable by operators to fund universal service obligations,
regulating and supervising competition.

Scope of Activities

A balance has been struck with the telecommunications ministry with regard to the licensing of public telecommunications networks : ART is in charge of processing licence applications and the telecommunications minister is ultimately empowered to grant the licences.

One of ART's major activities during 1997 has been to issue licences to France Telecom's competitors, in preparation for full liberalisation of the sector as of 1st January 1998 (public networks). ART is responsible for issuing licences for independent networks and for laying down the licensing conditions for other types of networks and facilities.

From the very beginning of 1997 ART has been called upon to exercise its duties with regard to interconnection by issuing an opinion on the draft decree on interconnection, in accordance with article L.34-8 of the Posts and Telecommunications Code and by approving France Telecom's interconnection reference offer.

ART settles any disputes which may arise between operators, particularly with regard to network interconnection and infrastructure sharing (rights of way, access to high points).

ART is able to impose penalties for non-compliance with regulations, to refer matters to the competition authority (Conseil de la Concurrence) and will generally act as an arbitrator, reconciling disputing parties and paving the way to agreement.

ART participates in drafting legislation and regulations and will be consulted on the position to be adopted by France in international and EU negotiations on telecommunications issues. It delivers opinions on universal service tariffs and the tariffs for services under de facto monopoly and also on the contribution payable by operators to fund universal service obligations.

ART plays an important role in forwarding market transparency and informing players (media, equipment manufacturers, service providers and users).

The Telecommunications Act also provides for the publication by ART, before 30 June of each year, of an annual report which is submitted to the Government and to Parliament. In this annual report ART may proposes any legislative or regulatory amendments which are necessary due to advances in the sector and the development of competition.

ART plays a vital role in technical regulation : managing the numbering plan, allocating numbers to telecommunications operators, allocating frequencies and laying down technical regulations.

With regard to the radio frequency spectrum, ART is responsible for allocating frequencies to civil telecommunications users and will be represented on the board of directors of the National Frequency Agency (ANF) along with certain administrations (Defence, Interior, Transport,...) and the broadcasting authority (CSA).

ART allocates frequencies for the following types of civil telecommunications networks and facilities :

public telecommunications networks: public mobile telephony, radio paging, local mobile radio and wireless local loop,
domestic cordless telephones,
business radio networks for closed user groups : VSAT networks, SNG stations, independent microwave networks, private or trunked mobile networks, on-site radio paging networks,
radio data transmission equipment, radio control, remote metering and remote alarm services for home automation applications, home monitoring and security systems, CB apparatus and amateur radio facilities.