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REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

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6. OVERVIEW OF THE GROUP’S BUSINESS<br />

6.1 PRINCIPAL ACTIVITIES<br />

Fibre optique<br />

de l’opérateur<br />

alternatif<br />

Site France Telecom<br />

CA<br />

Câble<br />

de renvoi<br />

répartiteur<br />

opérateurs<br />

URA<br />

DSLAM<br />

Espace dédié<br />

Schematic diagram of partial unbundling<br />

fréquences basses<br />

filtre<br />

Répartiteur<br />

d'abonnés<br />

fréquences hautes<br />

France Télécom<br />

Opérateur alternatif<br />

Nouveaux équipements<br />

ligne d'abonnés<br />

= boucle locale<br />

Abonnés<br />

filtre<br />

fréquences hautes<br />

fréquences basses<br />

(<br />

modem ADSL<br />

voix<br />

Internet<br />

DSLAM : Digital Subscriber's Line Access Multiplexer<br />

CA : Commutateur d'Abonnés<br />

URA : Unité de Raccordement d'Abonnés<br />

: point frontière de responsabilité<br />

In practice, an alternative operator needs to use an optical fiber network which terminates in France Télécom’s<br />

premises and install its own DSLAM equipment in co-location facilities or in dedicated spaces.<br />

Local loop unbundling completely frees an operator from dependence on France Télécom’s network. The<br />

recurring charges payable to France Télécom relate primarily to the rental of the copper pair, the splitter and the<br />

copper tie cable linking the subscriber’s modem to the operator’s DSLAM 13 .<br />

In the case of full unbundling, the alternative operator uses all the frequencies of a particular copper pair. In this<br />

case the user no longer pays telephone line rental to France Télécom and filters are no longer necessary.<br />

For the purposes of simplification, the following sections contain the abbreviations MSU (for the digital main<br />

switching unit) and LX (for the digital local exchange) in relation to interconnection and the term “France<br />

Télécom site” in relation to local loop unbundling.<br />

6.1.3.2 Development phases of the Group’s network<br />

6.1.3.2.1 Interconnection at the MSUs and all LXs in the Paris urban area<br />

The first development phase of the Group’s network, implemented between August 2000 and April 2001, was the<br />

interconnection at the digital main switching units (MSU) and all digital local exchanges (LX) in the Paris urban<br />

area for the collection of data traffic.<br />

Initially, the Group’s main objective was to interconnect its network to that of France Télécom in order to obtain<br />

a minimum level of national coverage. This required the Group to be connected to at least the 18 France Télécom<br />

MSUs covering all the regions of mainland France. The Group’s network at that time consisted of modem servers<br />

operated by Free and capable of meeting the needs of dial-up Internet subscribers.<br />

Between August 2000, the date of the first interconnection in Lille to the MSU for the northern region, and<br />

June 2001, the date of the last interconnection in Poitiers to the MSU for the central region, Free’s teams ordered<br />

E1 transmission capacity on France Télécom’s network which it interconnected directly to the Group’s network<br />

using optical fibers leased from a provider which had already installed the fiber network.<br />

13 See Sections 9.2.1.2 and 9.2.1.3 of this registration document for a description of the fixed and variable LLU charges.<br />

26 - <strong>Iliad</strong> – Registration Document 2007

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