TELECOMS: COMMISSION WELCOMES MOVE TO SCRAP FRENCH MOBILE REGULATION PROJECT.

On April 14, ARCEP informed the Commission, in accordance with the new regulatory framework for electronic communications, of a draft decision on the wholesale markets for mobile access and call origination, proposing that French mobile operators be required to meet all reasonable requests for access by MVNOs. The reason behind the proposal was ARCEP's belief that Orange, SFR and Bouygues Telecom are in a position of collective dominance on the French mobile telephony market. The Commission was to decide on this issue by May 31.

In parallel with this market analysis, the French market recently witnessed the signing of several MVNO contracts by two mobile network operators, SFR and Orange. Given these circumstances, the Commission indicated that ARCEP could, following the withdrawal of its draft measure, continue to monitor the effects of these new agreements on the prevailing market competition for the provision of wholesale and retail mobile services. The Commission also noted that, according to ARCEP and the French competition authority, whose opinion had been sought in advance, the retail market is characterised by rather weak competitive pressure.

The Commission has subsequently invited ARCEP, which has declared its intention to send the Commission a quarterly report on wholesale and retail markets for mobile access and call origination, to proceed with a new notification as soon as the effects of the new...