REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

6. OVERVIEW OF THE GROUP’S BUSINESS
6.6 REGULATORY SITUATION
framework also included harmonization measures concerning the rules governing licenses and authorizations,
interconnection and access to the network, as well as the universal voice telephony service. These measures had
to be transposed into the national law of European Member States by January 1, 1998. The EC regulatory
framework has been transposed into French law, in particular by Law 96-659 of July 27, 1996, and Order
2001-670 of July 25, 2001 amending the Post and Telecommunications Code.
Since July 2003: simplification of the regulatory framework to underpin the opening up of the markets
Once the European Commission considered that the first phase of the opening up of the market had been
achieved, it proposed that the EU legislator should relax the specific regulations and standardize the rules
applicable to all electronic communications networks, taking into account the heralded convergence of
telecommunications, audiovisual and information technologies. The new regulatory framework also allows for a
distinction to be made between the regulations applicable to different markets, in order to allow for the eventual
transition towards full competition in each individual market, based on competition law.
The existing European regulatory framework was therefore replaced by the new “2002 Telecoms Package” on
July 25, 2003, which was also the deadline for transposition of the new regulations.
The 2002 Telecoms Package subjects all types of transmission networks and related services to the same regime.
The scope of the regulation is therefore no longer limited to just telecommunications but covers all electronic
communications networks and services (mobile, cable, satellite, telecommunications and radio/audiovisual
broadcasting). It does not, however, apply to the content of the services delivered over electronic
communications networks using electronic communications services, such as broadcasting content (in particular
radio and television programs), financial services, and certain services specific to the information society which
are subject to other regulations (see Section 6.6.2 below, “Regulation of the content of electronic
communications”).
In particular the 2002 Telecoms Package includes the following texts:
• Directive 2002/21/EC of March 7, 2002, on a common regulatory framework for electronic communications
networks and services (“Framework Directive”). The Framework Directive defines the role of the national
regulatory authorities (“NRAs”) in relation to managing radio frequencies, numbering, rights of way,
co-location and sharing of resources, accounting separation, interoperability and the resolution of disputes
between operators. It also introduces a new concept concerning the designation of undertakings with
significant market power and establishes criteria and procedures aimed at ensuring a coherent assessment of
the dominant undertakings throughout the European Union. In this regard, the regulations in the Framework
Directive are rounded out by (i) the Commission Recommendation of February 11, 2003 (C-2003/497) on
the identification of the product and service markets susceptible to ex ante regulation in relation to operators
having significant market power, and (ii) the Commission Guidelines of July 11, 2002 (2002/C165/03), the
purpose of which is to assist the NRAs with the market analysis process and the identification of operators
with significant market power on the relevant markets. The Framework Directive provides that Member
States must impose obligations on undertakings with significant market power proportional to the distortion
of competition in the market in question.
• Directive 2002/19/EC of March 7, 2002, on access to, and interconnection of, electronic communications
networks and associated facilities (“Access Directive”). This Directive harmonizes the rights and obligations
of operators and service providers requesting interconnection or access to electronic communications
services or networks. The Access Directive establishes objectives for the NRAs concerning access and
interconnection, and determines procedures for ensuring that the obligations imposed by the NRAs are
reassessed and possibly withdrawn once the desired targets are actually met.
• Directive 2002/22/EC of March 7, 2002, on universal service and users’ rights relating to electronic
communications networks and services (“Universal Service Directive”). The aim of the Universal Service
Directive is first to ensure the availability throughout the EC of good quality publicly available services
through effective competition and choice, and second, to deal with circumstances where the needs of end
users are not satisfactorily met by the market. The Directive defines a minimum set of services of a specified
quality to be available to all end users at an affordable price, taking into account specific national conditions
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