16 Rev2b NGA Opinion Supplementary doc - IRG

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It exists also a demand from new entrants to use internal cabling of apartments building to
provide VDSL services from DSLAM installed in the basement of the buildings with fibre or
leased line access. BIPT has launched a consultation to determine the best way to process
such usage; a first consultation about a full unbundling at the level of the building distribution
frame has proved that is not feasible (too complex).
VDSL2 is included in markets 11 and 12 in market analysis; backhaul SDH and Ethernet is
imposed in market 13 up to the street cabinet.
2.3 France
Situation of DSL
In the last years, most of operators focused on DSL technology to increase bandwidth access
on the existing incumbent copper local loop. Currently ADSL2+ offers up to 24 Mbps
downstream and up to 1 Mbps upstream bandwidth. Thanks to the bitrates available with
DSL technology, internet service providers have been able to launch their triple play offers at
the end of 2003. Currently, from a total broadband market of 14.25 million customers, 13.55
million use DSL and 700 000 use cable.
Introduction of VDSL2 technology on France Télécom’s local loop, at the level of the street
cabinet, is still under study in France. Theoretically, VDSL2 may deliver up to 70 Mbps downstream.
However, no operator so far has announced any FttCab (Fibre to the Cabinet) deployment.
One of the reasons seems to be that France Télécom’s sub loop is too long, in
average, compared to the situation in Germany or the Netherlands, so that greater bandwidth
may not be attainable for a great part of the population.
FttH announcement
In 2006, the three main French DSL operators, France Télécom, Free and Neuf Cegetel,
announced their plans to roll out their own FttH (Fibre to the Home = new optical local loop)
networks in Paris and in the main cities. So far, alternative fibre rolls out in the local loop only
concerned business customers with MAN deployed in the main cities.
Actually, regarding announcements made by alternative operators (Free and Neuf Cegetel),
it appears that there is an opportunity, considering their market shares in the main cities, to
shift from a LLU model to an asset-based model, climbing up to the last row of the ladder of
investments by rolling out their own local loop. In particular, possibility to access to alternative
infrastructures in Paris, the sewing systems, enabling them to roll out their own fibre cables
till each buildings, has to be taken into account in those moves.
France Télécom:
- 270M€ till 2008 / 3 to 4,5 billions € till 2012
- deployments under process in Paris, Lille, Lyon, Toulouse, Poitiers, Marseille
- technology used: GPON
- … so as to massively reuse its own ducts inherited from the former monopoly
Free:
- 160M€ till 2008 / 1 billion € till 2012
- bought Citefibre (former FttH operator) in September 2006