Paris, March 18, 1996

PRIME MINISTER

PRESS STATEMENT

In keeping with France's European commitments, the Government has decided to reform the telecommunications sector to adopt it to technological, economic and legal evolution. To this end, a law on telecommunications regulations which reorganises this sector, with a view to opening it up to competition from January 1, 1998, will be presented to Parliament in the spring to be adopted during the current session.

This deadline makes it necessary for companies to evolve to allow them to face competition with the same advantages as their competitors.

The Prime Minister, to respond to the expectations of France Telecom personnel caused by this evolution, wishes to offer them the following guarantees through a solemn commitment by the State:

1- The law on regulations will guarantee the role and mission of France Telecom as public operator responsible for assuring a national public telecommunications service of quality for all ;

2 - France Telecom will remain a public company, with the State as main shareholder ;

3 - Those members of France Telecom personnel who are civil servants will conserve their civil service status and its associated guarantees, in particular, employment security and pension rights which have been acquired or will be acquired and which will be guaranteed by the State. France Telecom will remain their employer.

The Prime Minister has requested Mr Michel Bon, Chairman of France Telecom, to begin in-depth negotiations with the personnel and their representatives on social issues so as to define the conditions which will allow France Telecom to ensure its development in the new perspective which will open with the law on telecommunications regulations. While stressing how important he feels that dialogue in France Telecom must allow for the expression of all points of view, the Prime Minister invited Mr Bon to submit his proposals when all necessary reflection and discussion is complete.

© Secretary of State for industry - France