TELECOMMUNICATIONS/FRANCE: MOBILE PHONE CATCHMENT AREA STILL TOO SMALL.

• Position: Industry Trend or Event

During the first half of the year, the three mobile phone operators in France reported 3,182,000 new subscribers, to bring the national total to nearly 33 million. Lagging behind its European neighbours in terms of household equipment, France has suffered less in recent months from the slowdown in mobile phone sales. Less than one French person in two (49.4%) had such a phone at the end of last year, but the level of penetration soared to 52% by late March 2001. The French market might be still in good shape, but there is a downside. On the basis of a survey conducted in 40 test districts, ART announced on July 3 that the level of cover was still too small. 25 of the 40 districts are covered by more than 90% by at least one operator and 10 are covered by less than 60% by at least one operator. The average cover for the 40 districts and the three operators totals 80%, according to Jean-Michel Hubert. "The figures we discovered seem to be low. It should be possible to do better. The level of cover is apparently insufficient at present", says Dominique Roux, a member of the ART board.Mr Hubert calls on the powers that be to address the question of the "digital divide" (the gap between those who have access to information society resources and those who do not). This divide is of key importance for citizens and the buying public, as in the space of a few years, the mobile phone has become a common feature of modern society, not to mention its value in emergency situations. In late June, the regulator suggested that the Government should temporarily exempt mobile phone operators from having to contribute to the universal service for fixed telephony, put at FF 400 million (Euro 61 million) a year. The idea is that the money operators pay to the universal service should be transferred to the programme to complete the territorial cover. 400 million over three years would total 12 million, which would "almost solve the problem,", according to Dominique Roux.The proposal would be difficult to put into...