Alongside overseeing network shutdowns and spectrum renewals, Arcep is preparing for new responsibilities in regulating developments in cloud, AI and data markets
Operator capex decreased for the fourth year in a row
On 28 May 2026, Arcep released its annual “Telconomics” report outlining the performance of the French telecoms sector in 2025. The report highlights a 15% year-on-year (YoY) reduction in operator capex, which fell to €10.3bn (£8.9bn), excluding spectrum licence fees. This marks the fourth year in a row of declining investment since the 2021 peak of €14.8bn (£12.8bn), which was driven by the rapid expansion of fibre networks, with total capex now returning to 2018 levels. However, Arcep notes that overall investment is still around 50% higher than pre-2015, before the acceleration of fibre deployments across the country. Of total investment in 2025, €5.1bn (£4.4bn) – around half – went towards deploying mobile and fixed very high-speed local loops. At the same time, retail operator revenue reached €37.5bn (£32.4bn), declining for the first time after four years of growth, which is largely due to a decrease in mobile service revenue (as the price of mid-range plans have fallen), as well as a levelling off in fixed broadband prices.
France’s transition to fibre is well underway
The total number of internet subscriptions in France reached 33m at the end of 2025, with fibre continuing to drive significant growth. Fibre connections reached 27.1m in 2025 – almost doubling in just four years – and now account for 82% of all broadband subscriptions in the country (up seven percentage points YoY). In France, 93.4% of all premises are now able to subscribe to an FTTH service, and Arcep notes that the gap has closed between rural and urban areas. The transition to fibre coincides with the migration away from the copper network (which Orange is in the process of decommissioning), with the number of legacy DSL subscriptions in France falling from 14.4m at the end of 2021 to 4m at the end of 2025.
The number of SIM cards on 5G networks has continued to grow, although 4G remains dominant
By the end of 2025, 39% of SIM cards in France were active on 5G networks, reaching nearly 33m following an 8.3m increase during the year. Meanwhile, 4G remains the dominant technology, with 91% of SIM cards active on these networks. Mobile phone penetration is nearly universal, as 97% of the population aged 12 and older now possess a device. In terms of data usage, mobile customers consumed an average of 18GB per month in 2025 – a figure which has grown by around 2GB annually since 2018. Simultaneously, traditional SMS usage has seen a steady decline since 2016. SIM cards averaged just 70 messages per month in 2025, a significant decrease from the 250 messages recorded 10 years prior. This can largely be attributed to the rise of instant messaging apps, now used by 86% of those aged 12 and over. Regarding price levels, French consumers spend an average of €15 (£13) a month on mobile services. For high-speed and very high-speed fixed internet connections, the average monthly subscription cost is €37 (£32).
Arcep’s future regulatory focus will include monitoring 2G/3G shutdowns as well as developments in cloud and AI
Alongside facts and figures, Arcep also provides insight into its core workstreams in the telecoms sector, which will be centred around managing major technology transitions, including the decommissioning of 2G/3G networks. The 2G phase out is expected over the course of 2026, while the shutdown of 3G networks is scheduled for the end of 2028 for Orange and SFR, and by the end of 2029 for Bouygues Telecom. Arcep intends to conduct quarterly monitoring of the number of SIM cards installed in devices only compatible with 2G/3G networks and assess the environmental impact of the shutdown process. Looking ahead, Arcep is preparing for the expiration of all French mobile spectrum licences between 2030 and 2035, with plans to allocate new bands to create more opportunities for mobile networks. Arcep’s responsibilities have also grown to include cloud computing regulation following the 2024 SREN bill, and the regulator expects to be appointed the competent authority for the implementation of the Data Act in 2026. Further, Arcep has started to examine the impact of AI, publishing two specialised reports on the effects on generative AI in particular.
