On 29 July 2010, the French Competition Authority (the
"Authority") issued an opinion on the wholesale market
for mobile phone connections between different operators. The
Authority issued the opinion at the request of the French
Telecommunications and Posts Regulator
Mobile phone operators make certain payments to each other
whenever the user of one mobile phone operator communicates with
the user of another mobile phone operator (the
The Authority considers that a decrease in the level of the
Rates is necessary in order to protect competition on the markets
for electronic communications. Due to high Rates mobile phone
operators have been encouraging calls to the same network (for
example, by offering unlimited calls to the same operator).
Fledgling players and new entrants suffer in this sort of a
situation. This is why the Regulator had previously ordered
that the Rates be decreased.
Although this decrease helped the development of innovative
offers on the retail market, such as unlimited calls to all
operators, the difference between Rates and costs for the operators
remains too high, and the Authority is of the opinion that the
Regulator should further regulate the markets for electronic
The Authority proposes that the Regulator should focus on the
development of competition on the mobile phone market by
facilitating the entry of new operators. The more intense the
competition, the more the operators will have to compete with each
other and will not be tempted to pass on any increase in their
costs, such as the Rates, to retail prices.
To view Community Week, Issue 483; 6th August 2010 in full,
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