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Arcep reports on the state of France’s telecoms market

The regulator’s annual stocktake identifies just five companies responsible for the majority of domestic internet traffic, although it is yet to back calls for a ‘fair contribution’

An eye on copper as fibre rollouts progress: On 26 June 2023, Arcep published the first two volumes of its annual report, detailing its responsibilities, actions and decisions in regulated markets in 2022, as well as its efforts in support of regional connectivity across Metropolitan and Overseas France. Highlights of Arcep’s work during the last full year to date include its focus on the quality of service for FTTH networks, which are due to become the country’s “new fixed infrastructure of reference”, and the monitoring of operators’ commercial fibre rollouts in less densely populated areas (to ensure they are meeting the deployment commitments made to the Government). At the same time, the regulator is overseeing Orange’s ongoing copper switch-off programme, making sure this takes place according to a pace and to rules that safeguard users’ interests, preserve competition among operators and enable a dialogue and transparency with local authorities.

Heavy network investment maintained: Meanwhile, Arcep is supervising the upgrade of France’s mobile infrastructure, for example by making data and network performance monitoring tools available to all citizens, to help them to be better informed about operators’ rollouts and obligations. The regulator is also tracking improvements in rural connectivity as part of the ‘New Deal for Mobile’ – a 2018 agreement that saw operators take on stricter 4G coverage requirements in exchange for renewed licences in the 900MHz, 1800MHz and 2.1GHz spectrum bands, which were due to expire between 2021-2024. In parallel, Arcep’s report notes that operators have continued their 5G deployments, with Bouygues Telecom, Free, Orange and SFR each comfortably meeting the obligation to have 3,000 sites in service by the end of 2022. France’s progress in fixed and mobile broadband was underpinned by a collective operator investment of €14.6bn (£12.5bn, excluding spending on spectrum) in 2022. While this represents a 1.8% decrease compared to 2021, total capex was still above the level of spending in every other previous year.

Five firms account for over half of data traffic in France: On 4 July, Arcep then released the third volume of its annual stocktake, outlining the most recent work and analysis it has undertaken to ensure that the internet continues to “run smoothly and develop as a common good”. This year marks a decade of Arcep collecting data on interconnection. Between 2012-2022, incoming interconnection traffic to France’s four main ISPs increased 20 times, while installed capacity has grown proportionately during that time. In 2022, the report states that 54% of traffic to the customers of France’s largest ISPs came from five companies: Netflix, Google, Akamai, Meta and Amazon. Though the regulator believes this concentration confirms the important role the firms play in the delivery of internet traffic, it has so far not joined the Government in advocating they should make a ‘fair contribution’ to telecoms network costs.