By Alessandro Mauro
To submit comments and updates: alessandro.mauro@telecomitalia.it
In 2007 the France NRA ARCEP published a special edition of its newsletter in which pros and cons of the access network functional separation were illustrated; the negative effects resulting from the adoption of such a model were however particularly highlighted. To date no network separation model of the incumbent have been adopted.
The Authority stressed on several occasions the negative effects that the adoption of such a model might entail:
- the costs of realization are considerable; they would stem from the reorganization of the structure of the incumbent, which would also mean a duplication of the organizational structures;
- this measure would also be too costly if compared to the problems to be solved; the same result could be achieved even through a deeper regulatory framework;
- the separation process is not reversible: the usual remedies imposed on the incumbent following a market analysis may be withdrawn if the market conditions change, while the functional separation of the network could not turn back;
- this may also have a disincentive effect on the operators investment decisions;
- finally, ARCEP notes as functional separation would not eliminate the need for regulation of prices and quality services, and at the same time would not eliminate the problem of the control over the monopolist which manage the network.
In December 2009 ARCEP defined the regulatory framework for the development of the fiber network (FTTH) and settled the deadline of February 2010 for the publication by France Telecom, SFR and Free of the guidelines for the access to their network.
In June 2010 the operators launched a project that should lead to the birth of a company specific for the roll out of the fiber network: according to the project, a co-investment should connect within one year 800 thousand homes located in 84 municipalities, identified between 148 located in densely populated areas.