registration document France Telecom 2009 - Orange.com

overview of the Group’s Business
6
OVERVIEW OF BUSINESS
Moldova
Universal Service
In April 2009, the ANRCETI put forward for consultation a new
draft of the regulations concerning universal service. The new
draft sets out the procedures for: 1) the designation of universal
service suppliers, 2) the compensation of net cost of universal
service obligations, 3) the formation of the universal service
fund, 4) the terms of supply of the specifi c types of universal
service obligations, as well as provisions concerning 5) the
affordability of tariffs, 6) the control of expenditure and 7) the
quality of service.
According to the Government’s plan of activity, the Ministry of
Information Technologies and Communications is to submit to
the Government for approval the national plan for implementation
of the universal service. No draft plan has been presented
yet. In January 2010, the Ministry requested the operators to
provide information on the number of their users in different
geographic areas in order to assess the access to electronic
communications services in Moldova. This study should provide
the basis for the preparation of the abovementioned Plan.
The regulator also conducted a consultation on the draft
methodology for calculation of the net cost of provision of
universal service in 2008, which is subject to approval by the
Government.
Identification of Relevant Markets
In April 2009, the ANRCETI approved the decision identifying
the relevant markets of electronic communications networks
and/or services susceptible to ex-ante regulation. The regulator
identifi ed the seven markets listed in the 2007 Commission
Recommendation, as well as the markets 10 and 14 from
the 2003 Commission Recommendation and the market of
“physical access to associated facilities”.
The list of relevant markets includes the wholesale local loop
unbundling and broadband access markets, as well as access
to associated facilities (including ducts, towers, and premises).
Orange Moldova’s competitors have been lobbying for the
adoption of additional regulatory remedies on Orange Moldova,
particularly the identifi cation of the mobile retail market as a
market susceptible to ex-ante regulation, the designation of
Orange Moldova as an SMP operator on this market and the
implementation of regulatory obligations, even if this market is
not listed in the Commission’s 2007 recommendation.
Under the 2007 Law on electronic communications, the operators
recognized as having dominant position on the market by the
C ompetition A uthority are automatically considered as having
SMP on the same markets. So far, the Competition Authority
has found that Moldtelecom is dominant on local, long distance
and international fi xed telephony markets, on wholesale as well
as retail markets. The Competition Authority has also found that
Orange Moldova, Moldcell and Moldtelecom are dominant on
the market for termination of calls in their own mobile network.
Regulatory Support
In October 2009, the ANRCETI started a technical regulatory
assistance project, sponsored by EBRD (European Bank for
Reconstruction and Development).
The project will be implemented over 2009-2010 by Great
Village International Consultants (Canada), Incyte Consulting
(UK), Development Dynamics, Nicolas Higham & Associates
(UK) and McLean Foster & Co.
The project is focused on:
■ improvement of the regulator’s institutional capabilities
(training);
■ identifi cation of relevant markets, market analyses and
designation of SMP operators, imposition of regulatory
obligations;
■ interconnection and access to network infrastructure,
including the development of a fi xed broadband market;
■ preparation of the regulatory framework for the implementation
of number portability;
■ preparation of the regulatory framework for the implementation
of universal service.
Local loop Unbundling and Wholesale Broadband Markets:
In February 2010, ANRCETI issued two consultations on
the identifi cation of the local loop unbundling and wholesale
broadband access markets. These market analyses will be
followed by the determination of the SMP operator(s) and
appropriate remedies.
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Orange Moldova’s Activities
Z FINANCIAL AND OPERATING INDICATORS 2009 2008 2007
Revenues (in millions of euros) 150 137 102
Number of customers (in thousands ) 1,586 1,457 1,160
Total mobile ARPU (euros per year) 97 103 99
Source: Orange
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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