Regulator opposes FT functional separation plan

9 Apr 2009

The head of the French telecoms regulator Arcep, Jean-Claude Mallet, is quoted as saying he is against the functional separation of incumbent operator France Telecom’s (FT’s) wholesale and retail operations, currently being advocated by altnets such as SFR-backed Vivendi. Speaking at a press conference, Mallet said any decision would ultimately be taken within a wider European context – adding that the European Commission has already made clear that splitting an incumbent operator into two companies is ‘an exceptional case’. The Arcep supremo notes that for a functional separation to take place, it must first be clearly established that competition is not working in the local market, and in regards to France, this is not the case.

France, Orange Group