II - Developments in French telecommunications regulation

The year 1994 was marked by preparations for the deadline to open up the telephone service to competition by 1998, which was announced as far back as 1993 by the Council of the European Union, as well as by the assessment carried out of three years of the application of national legislation. In addition, the creation of the DGPT, which has responsibility for supervising the entire sector and for financially monitoring the two public operators, La Poste and France Télécom, has made it possible to define more precisely the responsibilities of and tools available to the regulatory authority.

In conformity with the spirit of cooperation which was the guiding force behind the actions of the Direction de la Réglementation Générale (Directorate of Regulatory Affairs), developing these new operating principles would be impossible without consulting all players in the telecommunications sector.

2.1. Preparing for the new deadlines

In autumn 1993 Bruno Lasserre organised a public consultation on the development of French telecommunications regulations, which is summarized in a report published in March 1994. (Note: this document can be ordered by fax on (33-1) 43 19 65 34.)

This consultation involved more than 50 hearings, gathering all the representatives from the sector: French and foreign telecommunications operators, cable operators, trade associations, user representatives, manufacturers and IT service companies, as well as trade unions and other employee representatives.

Public consultation on developments in French telecommunications regulations: List of written contributions received

- Commission Supérieure du Service Public des Postes et Télécommunications

- French and international telecommunications operators

  • AT&T . Bouygues . BT
  • Cable & Wireless . Deutsche Telekom . France Télécom
  • SFR (Société Française de Radiotéléphone) . Sprint
  • STET . TDF

- Cable operators

  • ANOC (Association des Nouveaux Opérateurs du Câble) . Caisse des Dépôts et Consignations
  • Compagnie Générale des Eaux . Lyonnaise des Eaux

- Trade associations

  • ACIRP (Association des Constructeurs et Installateurs de Radiotéléphonie Professionnelle — Association of Manufacturers and Installers of Mobile Business Phones)
  • AFTEL (Association Française pour la Télématique — French Telematics Association)
  • CGPME (Confédération Générale des Petites et Moyennes Entreprises — General Union of Small and Medium-Sized Enterprises)
  • CNPF (Conseil national du patronat français — French National Employers Union)
  • FIEE (Fédération des Industries Electriques et Electroniques — Union of Electrical and Electronics Industries)
  • FICOME (Fédération Interprofessionnelle de la Communication d'Entreprise — Association for Business Communication)
  • SFIB (Syndicat des Fabricants de Matériels Informatique et Bureautique — Association of Manufacturers of IT Equipment and Office Supplies)
  • SIMAVELEC (Syndicat des Industries de Matériels Audiovisuels Electroniques — Association of Electronic Audiovisual Equipment Manufacturers)
  • SIT (Syndicat des Industries de Télécommunications — Association of Telecommunications Industries)
  • SNIR (Syndicat National des Installateurs en Radiocommunications — National Association of Radiocommunications Installers)
  • SPER (Syndicat des Industries de Matériels Professionnels Electroniques et Radioélectriques — Association of Electronic and Radio Equipment Industries)
  • SYNTEC Informatique (Chambre Syndicale des sociétés de Services et d'Ingénierie Informatique — Association of IT Service Companies)
  • TENOR (fournisseur de moyens vocaux — Suppliers of voice technology)

- User representatives

  • AFUTT (Association Française des Utilisateurs du Téléphone et des Télécommunications — French Association of Telephones and Telecommunications Users)
  • American Chamber of Commerce
  • AUTIPAC (Association des Utilisateurs de Transpac — Association of Transpac Users)
  • AVICA (Association des Villes Câblées — Association of Cabled Cities)
  • CFCCI (Comité Français de la Chambre de Commerce Internationale — French Committee of the International Chamber of Commerce)
  • CIGREF (Club Informatique des Grandes Entreprises Françaises — Computer Club of Large French Companies)
  • UOPTT (Union des Offices de Transport et des PTT de la Chambre de Commmerce et d'Industrie de Paris — Transport Offices and PTT Union of the Paris Chamber of Commerce and Industry)

- Large users or operators of independent networks

  • Aéroports de Paris . EDF . Roubaix Eurotéléport
  • La Poste . RATP . SITA
  • SNCF

- Industry

  • ACNET (Association de Co-ordination Nationale des Entrepreneurs des Télécommunications — National Co-ordinating Association of Telecommunications Entrepreneurs)
  • Alcatel . IBM . Jeumont Schneider Telecom
  • Matra Communication . Motorola . Northern Telecom
  • Sagem . Siemens . TRT

- IT services companies

  • Cap Gemini Sogéti . Sema Group . Sligos

- Trade unions and staff representatives

  • AIT (Association des Ingénieurs des Télécommunications — Association of Telecommunications Engineers)
  • Amicale des anciens élèves de l'E.N.S.P.T.T. (Union of former PTT Advanced Institute students)
  • CFDT
  • CFE-CGC
  • CFTC
  • CGT-FO

- Others

  • DATAR

This significant participation of the players reflected a determination to sharply define the operating rules in the sector for the coming years.

The main points that came out of this consultation included:

This consultation thus contributed to defining France's position in European Union bodies and has made it possible for France to prepare actively and constructively for subsequent decisions.

2.2. The results of the public consultation

Three main subjects were brought up during the consultation: preparing for the European Union deadlines, conditions for fair competition, and the role and tools of the regulatory authority.

2.2.1. Preparing for a European discussion of infrastructures

The majority of players consulted came out in favour of extending competition in 1998 to infrastructures, and not only in the voice telephony sector. This now appears to be a more serious option economically, in terms of creating wealth and jobs.

There was clear demand for greater regulatory flexibility in three areas — alternative infrastructures, cable networks, and teleports — even before this date.

France supported both of these objectives during the Council of European Telecommunications Ministers meeting on 17 November 1994, and they became one of the priorities of the French presidency of the EU in the first half of 1995.

2.2.2. Developing fairer competition

Developments in the sector's competitive dynamics are still marked by the dominant presence of the traditional operators, which represents an obligatory transitional phase while developing other rival services.

This situation raised the need for specific regulations and the definition of particular rules to be applied to France Télécom in order to ensure better transparency in services as well as the respect of the principle of non-discrimination.

Those consulted generally did not dispute the basic principles of the rules set out in the law of 29 December 1990 and in the schedule of terms and conditions of France Télécom, which subject the supply of services by the public operator to the same conditions and procedures as its private competitors; nevertheless, they express the desire for improvements in carrying out this regulatory intervention.

There was also discussion on setting up affiliates for different France Télécom activities: there was strong, though cautious, support for carrying this out.

Everyone felt that it was imperative to strengthen the rules aimed at improving accounting transparency.

Two accompanying measures for these principles were solicited:

2.2.3. Reaffirming the role of the regulatory authority

The consultation period coincided with the creation of the Direction Générale des Postes et Télécommunications (DGPT — Directorate General of Posts and Telecommunications) which, in addition to the responsibilities of the former Direction de la Règlementation Générale (DRG — Directorate of Regulatory Affairs), has also had to take up new areas such as:

The need for a more comprehensive, economically-oriented regulation of the sector was particularly emphasized.

It was also pointed out that there could be improvements in the way disputes in the sector are settled:

Finally, this report provided a basic foundation for the activity of the "new regulatory authority" during 1994, as can be seen in the different areas taken up in this report.

III - A new field for experimentation: alternative infrastructures

IV - European Union decisions on opening the market for services and infrastructures

Chapter II