The French Competition Authority (The Conseil de la Concurrence) has published on 04 April its decision endorsing the French telecommunications regulator�s move to mandate the dominant mobile operators to open up their networks to Mobile Virtual Network Operators (MVNOs).

In December 2004 the French telecommunications regulator (ART) has published the findings of its market analysis of the French wholesale mobile access and origination market for public consultation. In its market analysis, the French regulator found that the market, dominated by the three major Mobile Network Operators (MNOs) Orange France, SFR and Bouygues, is uncompetitive. ART noted in its analysis that whilst it welcomes the existing agreements that the MNOs have voluntarily reached with MVNOs (Bouygues with Transatel, SFR with Debitel and Orange with Breizh Mobile), these agreements are insufficient and do not foster significant competition in the retail mobile market since Transatel and Breizh Mobile target niche markets (frequent travelers and low penetration areas) and Debitel aims for a low market share. As a remedy, ART proposes to impose on the MNOs the obligation to accommodate any reasonable request for access by MVNOs or new players without a mobile network of their own wishing to enter the market as MVNOs.

Following the public consultation, ART has submitted the conclusions of its market analysis to the French Competition Authority. The latter has now backed the French regulator�s findings and its proposed remedy, noting that ART is within its prerogative to ex-ante intervene by imposing an obligation on the MNOs to open up their network, in order to prevent the risks of insufficient competition.

Pursuant to Article 7 of the Framework Directive, the French regulator is required to notify the European Commission of its proposed remedies, and the latter has the power to veto the regulator�s proposal. Earlier this year, the European Commission has endorsed a similar move by the Irish telecom regulator.

Amit Rainhartz