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1998, total liberalisation of the telecommunications sector
Evolution of France Telecom
The numbering system



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© Secretary of State for industry - France

Total liberalisation of the telecommunications sector

The decision to open competition completely in the telecommunications sector on 1 January 1998 was taken unanimously by the member states of the European Union.

19 December 1997 : after announcing the previous day the granting of authorisations to four operators, Christian Pierret, gave details to the press of the new shape of the French telecommunications sector from January 1 1998, and recalled the stakes of total liberalisation of the telecommunications market - including the telephone. The minister also detailed the numbering system linked to the new operators (see preceding news items).
A few of the minister's key phrases:

  • "Competition in the market is a good thing, but it must not destroy what functions already. I wish to proceed 'gradually'. I do not want predators creaming the market."

  • "France Telecom is today well equipped to face competition. I am confident in its capacity to remain dynamic, prosperous and profitable."

  • "We have a legal and regulatory apparatus which foresees the layering of responsibilities. An organisation which benefits consumers, companies and individuals. But I wish to see clarification of the responsibilities of Parliament, the Authority for the Regulation of Telecommunications (ART) and the government."

  • "I am against combining the fields of competence and responsibilities of the CSA (High Council for Broadcasting) and the ART."

  • "Interconnection tariffs must be fair. No favours or prohibitive tariffs for new operators."

  • "France wishes to widen the content of universal service to access to the Internet for schools. To do this, it is necessary to modify a European directive, which will not be easy."

  • 1 December 1997 : the Council of European Ministers for Telecommunications was held in Brussels. Thirty days from the total liberalisation of the telecommunications sector in the European Union:
    -a communication on "putting telecommunications regulations into operation" was presented by the European Commission
    -a common position on the draft directive on the portability of numbers and operator preselection was adopted by the Council.
    Moreover, the Council adopted a directive on processing data of a personal nature and the protection of privacy in the telecommunications sector. Finally, an "open debate" was held about the Internet. On this occasion, France presented a memorandum stressing two points:
    - the importance of learning about the information society in school: "learning about the information society begins in school", "a long term educational initiative is a prerequisite". Thus, the French plan announced 17 November according to which "each school will be supplied with an access to the Internet over the coming months";
    - evolution of content of the universal service: "it would be legitimate, in order to facilitate entry into the information society, to change the definition of the universal service", which would imply evolution of the regulatory framework. Christian Pierret speaks during the Council

    13 November 1997 : Siris and Omnicom are the two new long distance operators to which the Authority for the Regulations of Telecommunications (ART) attributed an identifier digit that will allow all telecommunications subscribers, by replacing the starting 0 of any telephone, fax, or mobile number by this digit, to choose them should they so wish as the long distance operator.
    The digits, 7, 8 and 9 having already been chosen by Télécom Développement, France Telecom and Netco respectively (see news, 16 September), Siris, after a draw, chose 2, and Omnicom 5. Only two digits now remain, 4 and 6.

    5 November 1997 : the Council of State examines two decrees on the law on telecommunications with regard to encryption. Previously, the European Commission was notified about them.


    24 October 1997 : the office of the Secretary of State for Industry announced that the provisional cost of the universal service for telecommunications for 1998 is estimated at 6043 million French francs. Details of finance for the universal service for 1998. Press statement.


    21 October 1997 : the Authority for the Regulation of Telecommunications (ART) retains the "département" (county) as the local zone for sorting communications (decision n°97-277 of 17 October 1997 relative to the definition of the local sort zone. To be published in the Official Journal.) It is therefore on the basis of the département that the call sorting mechanism will operate from 1 January 1998. When a call is for a subscriber in the same département as the caller, this call will be transported by France Telecom (even if the subscriber mistakenly selects another operator). When a call is for a subscriber outside the "département" of the caller, and when the caller selects another operator, the call will be transmitted by France Telecom to the operator.
    Thus the ART completes the mechanism for selecting an operator (cf. decision n°97-277 of 12 September 1997).
    For more information:
    ART, fax : 33 1 43 19 65 34

    8 October 1997 : the Authority for the Regulation of Telecommunications (ART) started a public consultation on the conditions for access to underwater cable systems. Only a few weeks from the total liberalisation of the telecommunications sector, this question is vital, as more than 40% of international traffic from and to France is carried on underwater cables. This is the third public consultation begun by the ART. The first two concerned: -the high-speed local loop (30/09/97 - 31/10/97)
    -operator licences (May/June 1997)
    For more information :
    ART, fax : 33 1 43 19 65 34


    Evolution of France Telecom,
    the long-standing telecommunications operator in France.

    20 October 1997 : first day France Telecom is quoted on the stock exchange in Paris and New York. In Paris, shares in the French telecommunications operator were at 215FF at the outset, and 206,50FF at close of day. Almost 40 million shares changed hands during the day. The shares were also well received on the New York Stock Exchange. They went to market at US$ 31 11/16, and reached US$34 11/16 at close of day, figuring among the five most active of the American Depository Receipt (ADR).

    6 October 1997 : the government set the price of France Telecom shares at between 187FF for institutional investors, and 182 FF for the general public. 22 September 1997 : the government set the price of France Telecom shares at between 170 and 190 FF for institutional investors, and between 165 and 185 FF for the general public. The reservation period runs from 23 September to 6 October.

    • 5 June 1997 (instead of 6 May as previously planned) launch of the operation and start of reservations
    • 24 June 1997 (instead of 26 May) : start of the fixed price offer
    • 1 July 1997 evening (instead of 2 June) : end of fixed price offer
    • the date for the first quotation on the Paris and New York stock exchanges has not yet been set.

    The numbering system

    1st January 1997 : from today allocation of numbers is the responsibility of the Authority for the regulation of telecommunications. This independent authority will allocate numbers to an authorised operator in return for a fee that covers administrative and verification costs (decree n°96-12. Official Journal of 31/12/1996).

    . News from previous months