REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

6. OVERVIEW OF THE GROUP’S BUSINESS
6.1 PRINCIPAL ACTIVITIES
France Télécom network showing the 18 trunk exchange areas
Source: Iliad
In order to interconnect to the incumbent operator’s network in a given trunk exchange area, the alternative
operator must install a physical connection from a Point of Presence (POP) to a France Télécom switch located in
one of the 18 France Télécom digital main switching units.
The alternative operator may also connect to the lowest hierarchical level of switches installed on the network,
i.e. the digital local exchange, which is the switch closest to the customer.
In turn, each user is connected to a digital local exchange by means of a local concentrator.
Under an interconnect agreement, the incumbent operator charges the alternative operator on the basis of the
transmission capacity placed at its disposal, measured in digital blocks (E1, a unit of measure corresponding to
approximately 2 Mbit/s per second).
The OLO (Other Licensed Operator) can choose the level at which it wishes to make the interconnection, i.e. at
the main switching unit or the local exchange, and the number of E1 blocks it wishes to reserve at each level. The
higher the level in the France Télécom network at which traffic delivery takes place, the higher the
interconnection charges and the charges for transport and collection of data billed by the incumbent operator to
the alternative operator.
24 - Iliad – Registration Document 2007