France has the third largest telecoms market in Europe after Germany and the UK. The incumbent telco Orange Group is one of the world’s major players with interests in markets across Europe, the Middle East and Africa. The company recently embarked on its five-year ‘Essentials 2020’ program which is focussed on emerging markets as well as on investments in super-fast broadband and LTE infrastructure within its European footprint. Despite market liberalisation, the company still dominates all sectors though increasing competition from a number of major players (notably SFR Group and Iliad) has gradually eroded this lead, prompting it to respond with a range of innovative offers and wide-ranging strategies to meet future customer needs. It is also investing in a national fibre network, largely in response to the activities of smaller players.In the broadband market subscriber growth has been bolstered by demand for high bandwidth applications, prompting considerable investment in fibre infrastructure among telcos and regional governments. The pro-competitive regulator has also promoted access to Orange’s DSL network and fibre networks for new entrants. In early 2017 the regulator considered a range of measures to improve access to Orange’s networks.

1. KEY STATISTICS ....................1

1.1 Country overview ...............2

2. TELECOMMUNICATIONS MARKET ...3

2.1 Market analysis .................3

3. REGULATORY ENVIRONMENT ........10

3.1 History .............................10

3.1.2 Revised NFR

3.2 National legal framework ................11

3.3 France NumErique 2012 11

3.4 Regulatory authority .......12

3.4.1 Communications and Postal Regulatory Authority (ARCEP)

3.5 Telecom sector liberalisation in France .....................13

3.5.1 Privatisation of France Telecom

3.5.2 Interconnect

3.5.3 Access

3.5.4 Number Portability (NP)

3.5.5 Carrier PreSelection (CPS)

4. FIXED NETWORK OPERATORS ........18

4.1 Market overview ..............18

4.2 Orange .............................18

4.2.1 International strategies

4.2.1.1 Africa and Middle East

4.2.1.2 Europe

4.2.2 Essentials 2020

4.3 SFR Group (formerly Numéricable-SFR) .................24

4.3.1 Acquisitions

4.3.2 Numéricable merger with SFR

4.4 Free (Iliad) ......................27

4.5 Bouygues Telecom ..........29

5. TELECOMMUNICATIONS INFRASTRUCTURE ........32

5.1 National telecom network ................32

5.2 International infrastructure.............33

5.2.1 Submarine cable networks

5.2.2 Satellite networks

5.2.3 Wholesaling

5.2.3.1 Naked DSL

5.2.4 Cloud services

5.3 Smart infrastructure .......36

5.3.1 Internet of Things (IoT)

5.3.2 Smart Cities

6. BROADBAND MARKET ......37

6.1 Introduction and statistical overview ..........................37

6.1.1 Market analysis

6.1.2 Broadband statistics

6.1.3 Forecasts – broadband subscribers – 2016; 2018; 2021

6.1.4 Regulatory issues

6.1.4.1 Government support

6.1.4.2 Regional support

6.1.4.3 ‘Broadband for Everyone’

6.1.4.4 Net neutrality

6.1.4.5 Leased line market

6.1.4.6 Local Loop Unbundling (LLU)

6.1.4.7 Wholesale access

6.1.4.8 Bitstream access

6.2 Hybrid Fibre Coax (HFC) networks ..........................47

6.2.1 Cable network agreements

6.2.2 Cable consolidation

6.2.3 Numéricable

6.3 Digital Subscriber Line (DSL) networks ....................49

6.3.1 Orange

6.3.2 Free (Iliad)

6.3.3 SFR

6.3.4 Bouygues Telecom

6.3.5 ADSL2+

6.3.6 READSL2

6.3.7 Very High Data Rate Digital Subscriber Line (VDSL)

6.3.8 Symmetric Digital Subscriber Lines (SDSL)

6.3.9 Vectored DSL

6.4 Fibre-to-the-Premises (FttP) networks .......................55

6.4.1 Introduction

6.4.2 Legislation

6.4.2.1 Fibre deployment in non-urban areas

6.4.3 Government measures

6.4.4 Government support to 2025

6.4.5 Regional support

6.4.5.1 Local authorities

6.4.6 Statistics

6.4.7 Orange

6.4.8 Iliad (Free)

6.4.9 SFR Group

6.4.10 Bouygues Telecom

6.4.11 British Telecom (BT)

6.4.12 Municipal projects

6.4.16 Fibre network sharing

6.5 Other fixed broadband services .......69

6.5.1 Broadband Powerline (BPL)

6.5.2 Fixed wireless (Wi-Fi and WiMAX)

6.5.2.1 Wireless broadband

6.5.5.1 SFR

6.5.5.2 Orange

6.5.5.3 Boingo

6.5.5.4 Free

6.5.5.5 Public Analogue Mobile Radio (PAMR)

6.5.5.6 Internet via satellite

7. DIGITAL MEDIA ..................75

7.1 Introduction .....................75

7.2 Key Digital Media Players ...............75

7.2.1 Orange

7.2.2 Canal+

7.2.3 Iliad (Free)

7.2.4 Bouygues Telecom

7.2.5 SFR Group (Numéricable-SFR)

7.2.6 Other operators

7.3 Videostreaming ................78

7.3.1 Orange

7.3.2 SFR Group

7.3.3 Free

7.3.4 Bouygues Telecom

7.3.5 Other players

7.4 Communications: VoIP ..82

7.5 Other digital media services .............84

7.5.1 Introduction

7.5.2 Interactive TV (iTV)

7.5.3 Cable TV (CATV)

7.5.4 Cable consolidation

7.6 Satellite-based digital pay TV developments ..............85

7.6.1 Canal+

7.6.2 TPS

7.6.3 GlobeCast

7.6.4 Orange

7.6.5 AB Group

7.6.6 TNTSat

7.6.7 SFR Group

7.7 Digital Terrestrial TV (DTTV).........88

7.7.1 Introduction

7.7.2 Regulatory framework

7.7.3 Digital switchover

7.7.4 Digital dividend

7.7.5 DTTV launched

8. MOBILE COMMUNICATIONS ............92

8.1 Market analysis ...............92

8.2 Mobile statistics ...............93

8.2.1 General statistics

8.2.2 Mobile voice

8.2.2.1 Voice-over-LTE (VoLTE)

8.2.3 Mobile data

8.2.3.1 Short Message Service (SMS)

8.2.3.2 Multimedia Messaging Service (MMS)

8.2.4 Mobile broadband

8.2.5 Forecasts – mobile subscribers – 2016; 2018; 2021

8.3 Regulatory issues ...........103

8.3.1 Spectrum regulations and spectrum auctions

8.3.1.1 GSM

8.3.1.2 3G Licensing – round one

8.3.1.3 3G Licensing – round two

8.3.1.4 3G Licensing – round three

8.3.1.5 900 and 1800MHz frequencies

8.3.1.6 Public Analogue Mobile Radio (PAMR)

8.3.1.7 700MHz

8.3.1.8 800MHz

8.3.1.9 2.6GHz

8.3.2 900MHz

8.3.3 1800MHz

8.3.4 2.3GHz shared spectrum

8.3.5 2.6GHz

8.3.6 Network sharing

8.3.7 Mobile termination rates (MTR)

8.3.8 SMS interconnection

8.3.9 Roaming

8.3.10 Mobile Number Portability (MNP)

8.3.11 Fixed-Mobile Convergence (FMC)

8.4 Mobile infrastructure ....114

8.4.1 Digital networks

8.4.2 Third Generation (3G) mobile

8.4.3 Long-term Evolution (LTE)

8.4.3.1 Bouygues Telecom

8.4.3.2 Numéricable-SFR

8.4.3.3 Orange

8.4.3.4 Free Mobile

8.4.3.5 Other players

8.4.4 5G

8.4.5 Other infrastructure developments

8.4.5.1 General Packet Radio Services (GPRS)

8.4.5.2 High-Speed Packet Access (HSPA)

8.4.5.3 High-Speed Uplink Packet Access (HSUPA)

8.4.5.4 Enhanced Data for GSM Evolution (EDGE)

8.4.5.5 Femtocells

8.5 Major mobile operators .121

8.5.1 Orange

8.5.1.1 Network contracts

8.5.1.2 JV with Deutsche Telekom (DT)

8.5.2 SFR Group

8.5.2.1 Network contracts

8.5.3 Free Mobile

8.5.4 Bouygues Telecom

8.5.4.1 Network contracts

8.5.4.2 Attempts at company sale

8.5.5 MVNOs

8.6 Mobile content and applications ....135

8.6.1 Location based services

8.6.2 Near Field Communication (NFC)

8.6.3 Mobile satellite services

8.6.4 m-payments

8.6.5 m-banking

8.7 Machine-to-Machine (M2M) .........137