As the copper switch-off gathers pace, Arcep is proposing to relax price controls on Orange – a move that would align with the EC’s recent Gigabit Recommendation
This market review period will see the closure of the copper network: On 20 February 2023, Arcep launched a public consultation on its draft decision on wholesale broadband regulation for the 2024-2028 period. With this period due to be marked by the switch-off of Orange’s copper network, Arcep is looking to establish a framework that enables the successful coordination of copper shutdown and fibre deployment timetables. To ensure that FTTH network rollouts in France are completed before the copper network is decommissioned, Arcep will require switch-off operations in a given area to have notice periods that factor in the status of local fibre network deployments. It is also proposing strengthening data sharing obligations imposed on Orange to provide clarity for stakeholders on copper retirement plans.
Additional focus areas in supporting the transition to fibre: Arcep’s draft decisions outline three further objectives:
Maintain a satisfactory level of quality of service on the copper network up to the point of switch-off, particularly in those areas not yet covered by fibre;
Facilitate the completion of fibre rollouts while ensuring effective access to physical infrastructure (e.g. ducts and poles). Arcep has proposed to adapt obligations imposed on Orange, with the aim of reducing the turnaround time on rehabilitation work and connection lead times for end users; and
Boost competition in the business market, which remains insufficient. Arcep’s regulation will continue to encourage the development of fibre access products tailored to the needs of businesses (particularly MSMEs), for example by maintaining the obligation on Orange to provide passive shared local loop access solutions.
Proposed price controls appear to reflect the EC’s Gigabit Recommendation: Arcep is also seeking to adapt pricing obligations to changes in the market, noting that fibre subscribers now outnumber those on copper. According to Arcep, an accelerated copper switch-off out to 2028 will significantly alter the competitive landscape by reducing third-party operators’ dependence on legacy infrastructure. To that end, the regulator proposes to relax the price caps imposed on Orange in those areas where fibre has been deployed for a sufficiently long time and the copper network has been shut down commercially. In this sense, Arcep’s proposals appear to already align with the EC’s recent draft Gigabit Recommendation, which suggests Member States consider pricing flexibility for very high capacity networks (VHCNs), where competitive safeguards allow. While the Recommendation is non-binding on EU regulators, it could become a go-to for them when setting rules on access to SMP operators’ infrastructure. The Recommendation is currently under review by BEREC, after which the EC will adopt a final version.
