registration document France Telecom 2009 - Orange.com

6 OVERVIEW
overview of the group’s business
OF BUSINESS
France
This French fi scal framework change relating to the business tax
came into force on January 1, 2010.
For France Telecom, the overall impact on its cost base should
be neutral insofar as the abolition of the business tax is offset by
the implementation of the CET and the IFER.
In 2010, the impact on France Telecom’s results should be
marginal .
Outlook for 2010
Internal security draft law (Loppsi)
On February 16, 2010 the French National Assembly passed,
at fi rst reading, the draft law establishing the outline and
planning for internal security matters for 2010-2013 (so-called
“LOPPSI II”).
This draft law would create new obligations for Internet service
providers, relating to:
■ increased penalties for on-line identity theft;
■ and the blocking of child pornography websites and content.
National Environmental Commitment Draft Law, so-called Grenelle 2
This draft law contains:
■ provisions forbidding any advertising designed to promote
the sale, provision, utilization or use of mobile phones by
children under 14;
■ a ban on the utilization of mobile phones by students in
schools up to “collège” (around the age of 14 );
■ an obligation to sell handsets with an accessory limiting
exposure to the head;
■ provisions allowing the minister responsible for electronic
communications and the Arcep to take measures to ensure a
high level of protection for both the environment and human
health, jointly with the health and environment ministers.
The draft law was passed by the French Senate on
October 8, 2009 and is expected to be voted on by the French
National Assembly in 2010.
Debate over cell phone masts
A round table on “Radio frequency radiation, health and the
environment” held in May 2009 by the government confi rmed
the view of the WHO and of health authorities that cell phone
masts don’t pose a health risk.
In October 2009, after two years of research, the Afsset
(l’Agence française de sécurité sanitaire de l’environnement et
du travail - French Agency for Environmental and Occupational
Health Safety) reached the same conclusion in its expert report
on radio frequency radiation. Nevertheless, on the principle that
“once it is possible to reduce an environmental exposure, then
such a reduction must be considered”, the Afsset recommends
reviewing available options both with respect to masts and to
handsets. It cites, for example, providing better user information
through better labeling of the Specifi c Absorption Rate of mobile
telephones.
For its part, the French government established an Operational
Committee (Comop) tasked with carrying out a rigorous scientifi c
assessment of the possibility of reducing human exposure to
radiowave s, bringing together all stakeholders.
Mobile Telephony Regulations
Frequency Management
The French Postal and Electronic Communications Code gives
the Arcep the responsibility to assign the frequencies used
for electronic communications. It establishes, in the event of
a scarcity of resources, the principles to be applied to select
applicants via a competitive bidding process on the basis of
criteria relating to the conditions of use.
The frequency management required for personal mobile
television (PMT) comes under the responsibility of the CSA as
does the whole spectrum allocated to broadcasting (DTTV,
TDR, FM radio). It will only be possible to achieve the PMT
coverage planned by the CSA (60% of the population) once
analog television broadcasting ends, which by law, should take
place at end 2011. In the meanwhile, frequencies have been
determined to allow the service to be launched with coverage
of 30%.
Awarding of the 4 th 3G License
On January 12, 2010, the Arcep awarded the 4 th 3G license
to Free mobile. The new entrant is scheduled to commercially
launch its services in the fi rst half of 2012.
The awarding of the 4 th license is expected to be followed in the
fi rst half of 2010 by the awarding of the two remaining 2.1 GHz
channels and in the second half of 2010 by the launch of the
process of allocating new frequencies in the 800 MHz (digital
dividend) and 2.6 GHz bands for very high broadband mobile
communications.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM