TELECOMMUNICATIONS: FRENCH PRICES SET TO FALL IN 2005.

• Position: Autorite de Regulation des Telecoms(telecommunications industry - Brief Article

ART and the Ministry of Industry approved these new tariffs on December 10. The drop, to apply from January 17, will mainly affect subscriptions and the general rate. The European Commission gave a green light on December 1 to the ART plan, which was also empowered by a government decree in November to push the price cut through. Consumer associations and public authorities say the move is essential.

In early November, ART proposed a 36% drop in wholesale tariffs - the price paid by the fixed line operator to connect calls to mobile operators - over a two year period, with a third drop to follow in 2007. In concrete terms, the reduction of fixed to mobile tariffs should mean an 11% drop on a subscriber's bill in 2005, and 15% in 2006, according to ART forecasts. There should be a third drop in 2007, but the level of this will only be known in 2006. Consumer group UFC-Que Choisir renewed its criticisms on December 10, calling the situation "scandalous". The group says the drop should have been far greater in 2005 and accuses ART of protecting operators, which make large profits from these...