Orange to face the music after new regulation in France

Orange
Mobile operator Orange will be under pressure in France due to the new telecom regulation proposed by Arcep.

Orange enjoys lead in the FttH market for home users. The Arcep regulation aims to ensure steady pace of investment in superfast access networks, and sufficient competition across the country. In particular, Arcep plans on making adjustments and additions to the existing regulatory framework governing very high density areas.

Arcep noted that the ability to access Orange civil engineering infrastructures is important for the deployment of a shared optical local loop. Arcep guidelines will have several options for operational changes and for increasing access products’ versatility of application.

Arcep guidelines may encourage a new player and investment in the fiber space with national footprint. This will offer additional pressure to Orange.

Arcep plan of action for 2017-2020

# Ensure a state of strong competition over spending on superfast access
# Encourage efficient investments in infrastructure, synergies and innovation
# Enable the emergence of a mass fibre access market for SMEs
# Increase connection speeds and develop services nationwide
# Improve liquidity and non-discrimination in the business market

The public consultation will be open till 20 September 2016.

Arcep plans on imposing on Orange wholesale offers for the capacity services market an obligation of non-discrimination, based on the principle of a strict equivalence of access conditions, otherwise known as equivalence of inputs (EoI).

The Arcep consultations are being held on connectivity for businesses and the emergence of a mass market for SMEs  and investment in and transitioning to optical fibre, notably through changes to copper pair pricing, revealed the company.

 

Orange will be retaining 40 percent – 45 percent share of the market in the wake of the merger of SFR and Numericable.

Orange and SFR-Numericable have a combined market share of around 60 percent.

In the wholesale market for superfast local loops, Orange leads with 90 percent of all household product shares for FttH owing to the investment made in recent years.

Vina Krishnan
[email protected]