French behemoth France Telecom-Orange (FT) has cut its full unbundling tariffs from EUR9.00 to EUR8.80 (USD11.70 to USD11.45), Arcep reports. The move follows the publication of Decision No.2012-0007 of 17 January 2012, which amended Decision No. 05-0834 of 15 December 2005, setting the cost assessment method to be used for the twisted copper pair network, it said. Arcep confirmed that the move is aimed at ‘progressively shortening the amortisation period of copper cables from 25 to 13 years while at the same time progressively increasing the amortisation period of civil engineering assets from 40 to 50 years between now and 2021’.
In its release, Arcep confirms that FT plans to usher in these changes with immediate effect, and notes that the reductions will likely have positive repercussions for alternative operators. As such:
• the price decreases will be applied retroactively, as of 1 January 2012;
• the remaining price changes will come into effect on 1 February 2012.
These changes to France Telecom-Orange’s prices will translate into a decrease of more than EUR50 million in altnets’ expenses in 2012, reducing the incumbent carrier’s total income – currently around EUR2.4 billion.