registration document France Telecom 2009 - Orange.com

overview of the Group’s Business
6
OVERVIEW OF BUSINESS
Switzerland
Regulation of Mobile Telephony
Z KEY EVENTS
April 30
May 19
May 26
November 9
January 2010
Spectrum: OFCOM opened a consultation on
the attribution of various mobile frequency bands
as of 2014 and 2016.
Mobile termination rates: OFCOM concluded
that MTRs in Switzerland are above the highest
MTRs of comparable operators in a comparable
country.
Licensing: Orange, Swisscom and Sunrise
received new licenses, replacing and extending
their previous GSM licenses until the end of
2013.
Spectrum: ComCom instructed OFCOM to start
the preparatory work for the invitation to tender
for the free mobile radio frequencies.
Acquisition: f ormal merger fi ling with the
Competition Commission concerning Orange
and Sunrise. In April 2010, the Competition
Commission rejected the merger proposal .
Spectrum
In April 2009, OFCOM opened a consultation on the attribution
of various mobile frequency bands (900 MHz, 1 800 MHz,
2.1 GHz, UMTS extension band and digital dividend) as of 2014
and 2016. The aim is to attribute the whole mobile spectrum as
soon as it is available by auctioning off small frequency blocks
in 2010/2011. The invitation to tender would take place in 2010
and would be opened to all.
In November 2009, ComCom instructed the OFCOM to start
the preparatory work for the invitation to tender for the mobile
radio frequencies which are currently free or will become free in
the foreseeable future, including the current GSM and UMTS
licenses which expire in 2013 and 2016. ComCom is expected
to launch the public invitation to tender for these frequencies in
2010. The allocation of frequencies will take place by auction.
Mobile Call Termination Rates
Following the Investigation by the Competition Commission on
the mobile termination rates (MTRs), the OFCOM concluded
that MTRs in Switzerland are above the highest MTRs of
comparable operators in a comparable country.
All mobile operators commented on OFCOM’s fi ndings.
Orange’s response was fi led on August 17, 2009 challenging
the key principles underpinning OFCOM’s opinion. Orange
bilaterally negotiated with other operators and believes it is
necessary that glide path negotiations maintain an asymmetry
in the MTRs.
Licensing
In May 2009, Orange, Swisscom and Sunrise received new
licenses replacing and extending their previous GSM licenses
until the end of 2013. The conditions in the new licenses replace
those of the old ones from June 2, 2009.
Acquisition
On November 25, 2009, France Telecom and TDC signed
an exclusive negotiation agreement on the merger of their
Swiss subsidiaries, Orange Communication S.A.and Sunrise
Communications S.A. respectively, and they offi cially fi led
a merger project with the Swiss competition commission
(COMCO). In December 2009, COMCO launched an in-depth
study (phase II) of the project. In February 2010, the merger
project was also submitted to the Federal Communication
Commission (ComCom). On April 22, 2010, COMCO informed
France Telecom and TDC that it had rejected the merger
proposal between their respective subsidiaries.
Regulation of Fixed-Line Telephony and Broadband Internet
Z KEY EVENTS
February 19
April 8
September 8
October 6
November 4
November 5
Bitstream access: t he Federal Administrative
Court confi rmed that Swisscom should offer
bitstream access on regulated conditions.
Regulatory framework: OFCOM launched a
public consultation on the revision of various
Swiss Telecommunication Ordinances.
Regulatory framework: t he second Chamber
of the Parliament rejected the ex-ante regulation
proposed by ComCom.
Fiber: ComCom announced that the round table
on FTTH and the corresponding work groups are
producing concrete results.
Telecom Ordinances: t he Federal Council
approved the revision of the Telecom Ordinances.
Bitstream access: t he Swiss Competition
Authority imposed on Swisscom a fi ne of
219 million Swiss francs for abuse of dominant
position (margin squeeze) in relation to its pricing
policy for ADSL services.
Bitstream Access
In February 2009, the Federal Administrative Court confi rmed
the view of ComCom and the Competition Commission that
Swisscom should offer fast bitstream access on regulated
conditions. The regulated bitstream offer from Swisscom was
published in June 2009. In November 2009, the Competition
Commission adopted a decision which fi nds that Swisscom
abused its dominant position in relation to the pricing policy for
ADSL services. The Decision requires Swisscom to pay a fi ne of
219 million Swiss francs.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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