France - Key Statistics, Telecom Market and Regulatory Overviews

Synopsis

France has the third largest telecoms market in Europe. The incumbent, France Telecom (Orange), is one of the world’s major players with interests in markets across Europe and francophone Africa. Despite sector liberalisation, the company still dominates all sectors though increasing competition from a small number of major players (notably SFR and Iliad) has gradually eroded this lead, prompting it to respond with a range of innovative offers and a wide-ranging NeXT strategy to meet future customer needs. It is also investing in a national fibre network, largely in response to the activities of smaller players in this market. The mobile sector is dominated by a triopoly of providers with relatively low but steadily increasing MVNO competition, while the vibrant broadband market has seen strong growth as a result of regulatory measures promoting competitor access to exchanges through local loop unbundling, as well as to fibre infrastructure and ducts.

This report introduces the key aspects of France’s telecom market, providing valuable updated statistics on the country’s fixed network, an analysis of operator strategies in coming years, and a review of the key regulatory issues including the status of number portability, wholesaling and carrier preselection.

Key developments:

Declining fixed-line sector drags telecom revenue down in 2011; FT enters Congolese mobile market; ACE submarine cable connecting France with African markets makes landing; Vivendi buys out Vodafone’s interest in SFR; FT initiates Conquest 2015 strategy; Iliad secures roaming deal with Orange for 2012 Free Mobile launch; telecom investment recovers from 2009 downturn; service revenue falls in 2011 due to contraction of fixed-line sector; regulator considers 10% reduction in LLU charges; FT withdraws from Swiss, Austrian and Portuguese markets; regulator’s market data to Q2 2011; operator data to September 2011.

Companies covered in this report include:

France Telecom, Iliad, SFR

Table of Contents

• 1. Synopsis
• 2. Key statistics
• 3. Telecommunications market
  • 3.1 Overview of France’s telecom market
• 4. Regulatory environment
  • 4.1 History
    • 4.1.1 Revised NFR
  • 4.2 National legal framework
  • 4.3 France NumErique 2012
  • 4.4 Regulatory authority
    • 4.4.1 Communications and Postal Regulatory Authority (ARCEP)
  • 4.5 Telecom sector liberalisation in France
    • 4.5.1 Privatisation of France Telecom
    • 4.5.2 Interconnect
    • 4.5.3 Access
    • 4.5.4 Number portability (NP)
    • 4.5.5 Carrier PreSelection (CPS)
• 5. Fixed network operators in France
  • 5.1 Market overview
  • 5.2 Fixed-line statistics
  • 5.3 France Telecom
    • 5.3.1 Performance in 2011
    • 5.3.2 Difficulties ahead
    • 5.3.3 International strategies
    • 5.3.4 2015 Action Plan
    • 5.3.5 Rebranding
  • 5.4 SFR
    • 5.4.1 Acquisition of neuf Cegetel
    • 5.4.2 Buyout of Vodafone
  • 5.5 Free (Iliad)
• 6. Telecommunications infrastructure
  • 6.1 National telecom network
  • 6.2 Next Generation Networks (NGNs)
  • 6.3 International infrastructure
    • 6.3.1 Submarine cable networks
    • 6.3.2 Satellite networks
    • 6.3.3 Wholesaling
• 7. Related reports

• Table 1 – Country statistics – 2011 (e)
• Table 2 – Telecom revenue and investment statistics – 2011 (e)
• Table 3 – Telephone network statistics – June 2011
• Table 4 – Internet user statistics – 2011 (e)
• Table 5 – Broadband statistics – 2011 (e)
• Table 6 – Mobile statistics – 2011 (e)
• Table 7 – National telecommunications authorities
• Table 8 – Telecom service investment – 2002 - 2012
• Table 9 – Telecom service investment annual change – 2003 - 2012
• Table 10 – Telecom service operators declared – 2010
• Table 11 – End-user traffic volume in minutes by sector – 2002 - 2011
• Table 12 – End-user traffic growth by sector – 2002 - 2011
• Table 13 – Average monthly bill, by service – 2007 - 2011
• Table 14 – Proportion of fixed lines by technology – 2004 - 2011
• Table 15 – Telecom end-user revenue – 2002 - 2012
• Table 16 – Key operator share of telecom capex – 2008 - 2011
• Table 17 – Proportion of telecom revenue by sector – 2002 - 2011
• Table 18 – End-user telecom market value by sector – 2003 - 2011
• Table 19 – End-user telecom market value annual change – 2003 - 2011
• Table 20 – Fixed lines subscriptions by type – 2003 - 2011
• Table 21 – Fixed-call termination charges – 2008 - 2013
• Table 22 – Interconnect revenue – 2007 - 2011
• Table 23 – Interconnect volume – 2007 - 2011
• Table 24 – Interconnect volume quarterly change – 2010 - 2011
• Table 25 – LLU, shared access price – connection, monthly rental – 2006 - 2009
• Table 26 – Access lines, LLU and bitstream (regulator data) – 2007 - 2011
• Table 27 – Fixed numbers ported annually – 2006 - 2011
• Table 28 – Indirect connections – 2005 - 2011
• Table 29 – Annual change in carrier preselection usage – 2002 - 2011
• Table 30 – Fixed-line revenue (outbound) – 2004 - 2012
• Table 31 – Fixed-line traffic in minutes – 2004 - 2011
• Table 32 – France Telecom customers by sector (France) – 2006 - 2011
• Table 33 – France Telecom PSTN lines – 2007 - 2011
• Table 34 – France Telecom Group financial data by sector – 2008 - 2011
• Table 35 – France Telecom (domestic) financial data – 2007 - 2011
• Table 36 – France Telecom (domestic) telecom capex – 2008 - 2011
• Table 37 – France Telecom retail and wholesale lines – 2006 - 2011
• Table 38 – SFR subscribers – 2006 - 2011
• Table 39 – SFR financial data – 2005 - 2011
• Table 40 – SFR telecom capex – 2008 - 2011
• Table 41 – neuf Cegetel financial data (historic) – 2006 - 2007
• Table 42 – neuf Cegetel subscribers (historic) – 2006 - 2008
• Table 43 – Free financial data – 2006 – 2011
• Table 44 – Free telecom capex – 2007 – 2011
• Table 45 – Free DSL, LLU subscribers – 2005 - 2011
• Table 46 – France Telecom wholesale broadband lines – 2005 - 2011

• Chart 1 – Telecom service investment – 2002 – 2012
• Chart 2 – End-user traffic volume in minutes by sector – 2002 – 2011
• Chart 3 – Average monthly bill, by service – 2007 – 2011
• Chart 4 – End-user telecom market value by sector – 2003 – 2011
• Chart 5 – Fixed lines subscriptions by type – 2003 – 2011
• Chart 6 – Indirect connections – 2006 - 2011
• Chart 7 – France Telecom customers by sector (France) – 2006 – 2011
• Chart 8 – France Telecom Group financial data – 2008 – 2011
• Chart 9 – France Telecom (domestic) financial data – 2007 – 2011
• Chart 10 – France Telecom retail and wholesale lines – 2006 – 2011
• Chart 11 – SFR subscribers – 2006 - 2011
• Chart 12 – SFR financial data – 2005 - 2011
• Chart 13 – Free financial data – 2006 – 2011
• Chart 14 – France Telecom wholesale broadband lines – 2005 – 2011

• Exhibit 1 – EU – The New Regulatory Framework (NRF)
• Exhibit 2 – Access and the local loop