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Press Update

Learn about ART's goals for developing ADSL in France, including promoting competition, improving access, and enhancing internet service quality for consumers. Discover the key actions and improvements made in the high-speed internet value chain. Find out how ART aims to benefit ISPs, operators, and consumers through market competition and lower prices.

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Press Update

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  1. Press Update The Development of high-speed Internet in France ART’s opinion on France Télécom IP/ADSL offers 18 July 2002

  2. The development of the high-speed market in Europe • Rapid development: from 5.6 million high-speed subscribers in Europe in late 2001 to 9.5 million at end 2002* • The price of network access is a critical factor for market development *source: CMA consulting

  3. The high-speed Internet value chain Collection and transport Consumer Access ISP France Télécom Competing operators France Télécom Competing operators Wanadoo Competing ISPs Option 1 Full unbundled access Shared access Option 3 Option 5 Effective competition must be present along the entire value chain

  4. ART’s goals for the development of ADSL in France • Effective competition along the entire value chain • Access: the decision dated 16 April 2002 on the pricing and operational conditions of unbundling (full unbundled access and shared access: option 1) • Collection and transport: the need for an option 3 offer, to allow operators to complete deployment for unbundling and to compete with France Télécom’s option 5 offers (IP/ADSL) • Internetservice: making ISPs’ ADSL offers viable, while ensuring that operators benefit from viable market entry conditions, via unbundling and option 3

  5. What ART is doing (1) • Access: the decision of 16 April 2002 and France Télécom’s reference offer of June 2002 for unbundling (option 1): • Fees that are among the lowest in Europe: • Collocation conditions that have been simplified considerably

  6. What ART is doing (2) • Option 5: the pricing opinion of 18 July 2002 Major improvements in the conditions of option 5 for ISPs, to benefit market development

  7. What ART is doing (3) • Option 3: changes made by France Télécom in early July, compatible with IP/ADSL prices • Two offers now available: • Functional improvements, in particular the elimination of pre-reservation of access, which allows operators to order access by unit • Improvements still to be made: access to the lower level (1st cross connect)

  8. Conclusion • A measure that is highly beneficial to the dynamic development of the market for all players: • ISPs: significantly improved economic conditions, extension of the range of offered services • operators: viable entry conditions on the market, to complement unbundling • For consumers: competition that will encourage a decline in prices (cf. current market price: €45 VAT included, for a 512 kbits/s offer); prices will drop as a result of market competition • Implementation as of 15 October 2002 to ensure that France Télécom and competing operators are able to launch their offers to ISPs at the same time

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