• The national regulatory body DGPT (Direction Generale des Postes et Telecommunications) pronounces two decisions on the conditions of interconnection to France Telecom’s public network of CGE’s paging service Tam-Tam, and Bouygues Telecom’s mobile DCS 1800 service
• A workshop on new regulatory rules, chaired by the Minister in charge of the telecommunications industry François Fillon, completes a two-month public consultation

• Alternative networks: DGPT authorises highways operating company SANEF (Societe des Autoroutes du Nord et de l’Est de la France) to provide transmission capacities to mobile operators (the same authorisation had been granted in December 1995 to Cofiroute, a similar company)

• The Prime Minister announces the government decision to review France Telecom’s status
• French Parliament adopts the law on experimentation in the field of information technologies and services
• Prime Minister announces 74 additional information society experimentations stamped further to the call for tenders

• Publication of Champsaur Commission’s final report on "interconnection and funding of universal service in telecommunications".
• Set up within DGPT of a working group on interconnection issues
• The "information highways law" (N° 96-299, April 10, 1996), creating a system of experimental time-limited licences intended for operators offering innovative initiatives.

• A licence of data transmission is awarded to SITA Network Group (Société Internationale de Telecommunication Aéronautique)

• Two licences for data transmission service and value-added service on leased lines are awarded to Axone Services & Developpement
• French Parliament adopts the new "law on telecommunications regulation" - Law N° 96-659, July 26, 1996, and the law concerning the France Telecom’s status - Law N°96-660, July 26, 1996

• Opening up to competition of alternative telecommunications infrastructures for the provision of liberalised services
• Law on telecommunication regulation N° 96-659 - July 1996
• Law related to the national company France Telecom Law N° 96-660, July 26 1996 reviews France Telecom's status, aiming at giving to France Telecom the appropriate structure and means in order to face the opening up to competition.

• The French Ministry of telecommunications awards the two first alternative infrastructure licences to two French railway companies : France Manche, a subsidiary of the Anglo-French company Eurotunnel and Telecom Developpement, a subsidiary of SNCF

• 31st: France Telecom becomes a limited company

• Set up of new regulatory bodies: Autorité de Regulation des Telecommunications (ART, Authority of Telecommunications Regulation) and Agence Nationale des Fréquences (ANF, National Agency of Frequencies)
• Publication of the project of Interconnection Decree which sets the rules for the calculation of connection rights paid to France Telecom by its competitors - Article L. 34-8 of the Posts and Telecommunications Code
• A new licence had been issued for France Telecom on the 1st January. France Telecom is confirmed as being the operator in charge of the universal service as regards telephony service (provision of a service at an affordable price without discrimination, publication of the universal directory, provision of public pay phones, and objective, transparent and cost oriented tariffs)

• The ART issues a statement on an project of decree on universal service funding issues

• The ART issues a statement on a project of decree on interconnection issues
• The government publishes the final decree on interconnection (Journal Officiel, March 4, 1997), taking into account ART’s statement. The decree stipulates that France Telecom’s local switches will be available to its competitors for their interconnection and that the public company will have to list the switches that cannot be opened to interconnection and to justify it in a technical way. Moreover, the decree specifies the method of calculation of interconnection charges.
• Publication of a Decree on telecommunications services opened to public concerning the content of declaration and authorisation demand of these services (Decree n° 97-245, March 1997)

• ART has approved France Telecom's standard interconnection offer: 3 categories have been defined according to the kind of communication (intra-local exchange, single transit from POI, dual transit from POI).
• Publication of the Decree on terminal equipment concerning the conformity evaluation procedures and the delivery of certificates (L.34-9, Decree n°97-328, 11 April 1997)
• Publication of the Decree on the impossibility to seize telephone terminal (L.35-1, Decree n°97-375, 20 April 1997)
• Lyonnaise Cable has submitted ART on a dispute with France Telecom concerning the interconnection fees to provide Internet access over the cable network
• Suspension of the partial sale of France Telecom due to Parliamentary election

• Publication of the Decree on the financing of the Universal Service (L35-3, Decree n° 897-475, 14 May 1997): universal service will be financed by all operators in France exploiting networks opened to public and all telephone services providers.
• Publication of the Decree which sets the rules for the calculation of radiospectrum fees (Decree n° 8 97-520, 22 May 1997)
• Cegetel has awarded an experimental licence for La Defense network

• Publication of the Decree on right of way on road public domain and constraints on private properties concerning application and implementation rules (L47, L48, Decree n° 97-683, 1 June 1997)
• France Telecom stock sale suspended to the final decision of the new government
• Publication of the Decree on the delegated attributions of the Secretary of State for industry concerning industry, energy, raw materials, posts and telecommunications (Decree n° 97-728, 18 June 1997)

• ART’s first assessment of the universal service obligation cost (published in the "Journal officiel" in August).
• ART’s call for tender for two licences of nation-wide networks of digital professional radiocommunications
• France Telecom’s appeal against the interconnection decree with the Conseil d'Etat (State Council): France Telecom disputes the definition of the content of the standard interconnection offer and the methods of costs calculation (based on long term incremental costs).
• ART gave cable operators the right to provide Internet access (Decision 97-209 and 97-210, July 10, 1997), following the complaint from Lyonnaise Câble (Group Lyonnaise des Eaux) and CGV (Group Compagnie Générale des Eaux). This question has emphasised the problem of responsibility share between ART and CSA (Conseil supérieur de l'Audiovisuel).
• The "competition council" (Conseil de la Concurrence) fined France Telecom (and its subsidiary Transpac) FF30 million for "obstacle to competition" and for "abuse of a dominant position ". This fine followed a complaint lodged by British telecom France.
• The second part of France Telecom Interconnection Catalogue, applicable as of 1998, has been approved by ART: it consists of two facets : the offer intended to operators of networks opened to public (with 2 majors aspects: numbers portability and routing of international traffic from France) and those intended to suppliers of public telephone service.

• The Delebarre Report on "the stakes in the future of France Telecom" (September 5), following a "deep social dialogue" within the national operator. The report draws several stakes around 5 main lines: international strategy, social practises, research and development, public services and universal service, regulation of the telecommunication industry.
• The government confirms the partial sale of France Telecom on September 8.
• ART granted two fixed voice telephony licences to Cegetel and Bouygues Telecom, as competitors to France Telecom. In the same time, it gave the two operators their prefix, which will enable subscribers to choose them for long distance and international calls (# 7 for Cegetel and #9 for Bouygues Telecom). This announcement was an important step forward liberalisation of voice telephony scheduled on January 1, 1998.

• ART consultation on under-water cables: it dealt with access conditions to these cables which carry 40% of international telecommunications starting from France and arriving in France. It run until November 5, 1997.
• Fixed telephony licenses are processed coming from France Telecom, Omnicom, Siris, Esprit Telecom, Cegetel and Bouygues.
• ART's final assessment on universal service obligation cost: FF 6,043 bn. This cost could be reviewed in 1999 according to the alternative operators' turnover and the traffic generated.
• France Telecom shares are traded in Paris and New York on the 20^th October 1997 at a rate of FF 182.
• CSA is presenting their annual report 1996. It announced a closer co-operation with ART.

• Tariff agreement between the French Government and France Telecom: it stipulates a reduction of universal tariff for the period 1997-2000 (9% annual average in 1997 and 1998 and 4,5% annual average in 1999 - 2000).
• 3 proposals to the ART's call for tender for licences of professional mobile telephony networks, launched in July 1997 (see above) have been received from Aéroports de Paris, RATP and Regiocom.
• ART consultation on high rate local loop, mobile networks development and the Internet
• ART defines the local area by choosing the administrative "department". However, this dividing into "departments" does not apply to France Telecom which keeps its current "Widened Local Pricing Area" which is wider than a department. Several operators have disputed this decision.
• ART decision concerning Colt Telecom: ART gave Colt Telecom the right to install their own optic fibre network in La Défense Area.

• Lyonnaise Cable to start telephony over Annecy's cable network: Lyonnaise Cable is the first operator to offer a telephone service over its network to all potential subscribers.
• France suggests to include the Internet connections for schools in the universal service
• The French Government has announced the awarding of four fixed telephony licenses to Telecom Développement (Cegetel/SNCF), Bouygues Stet Telecom, Siris and Omnicom.
• ART investigates two proposals for satellite personal services (S-PCS) licenses brought in by Tesam (France Telecom/Alcatel) and Iridium Italia (Telecom Italia/Telecom Italia Mobile and Nuova Telespazio). The S-PCS networks will be available by 1998/1999 and provide services such as telephony, fax, paging, email, low-rate data transmission.
• Access to under-water cable: following the consultation launched in October (see above), ART announced in December that it will guarantee each operator the same conditions for accessing and using the under-water cables as well as guarantee the access to the earth stations, interfacing the under-water cable and the mainland infrastructure.

• Lyonnaise Cable asks ART for the right to provide Telephony services ; this new complaint follows the first complaint made in April 1997 for the right to offer Internet access at which ART gave a positive answer (see above).
• ART Information on Licenses : 19 licenses have already been issued. Four of them have been submitted to the minister for decision and 23 are being processed. These 46 do not include the licenses for mobile radiocommunication.
• ART makes arrangements for subscribers connected via France Telecom's first-generation switches. At the beginning of January, the press pointed out that nearly 2 million households, connected via France Telecom's first generation switches would not be able to choose its telecommunications operator directly by dialling the single " E " digit. The problem represents about 1.8 million lines, or 5.6% of subscribers. First generation switches are due to be replaced between now and the year 2000, according to France Telecom's investment schedule. ART has made provisions for this transitional period. ART has put in place a transitional technical solution.

• ART refuses France Telecom’s special rates for Internet users
• ART plans to issue experimental wireless local-loop licences .
• ART gives the two last single ‘E’ prefixes for carrier selection
• ART reserves the first 4-digit prefixes
• ART allocates frequencies to a cable network operator for the transmission of TV programmes
• ART adopts management rules for the national numbering plan
• Publication of two Decrees on encryption
• On February 26, Christian Pierret, the State Secretary For Industry, presented in Brussels a memorandum on the creation of "a European and international environment to develop the electronic commerce" on the Internet.

• ART explains its position on the use of devices to connect to mobile telephone networks, gives precision on the current regulatory framework and equipment Conformity certification. ART has decided that the use of connection devices, which enable users to enjoy lower tariffs for their calls to mobile phones, should be permitted.

• Publication of the two last Decrees on encryption: one defines the categories and means of encryption services exempt from all preliminary rules; the other defines the categories and means of encryption services in which the procedure of the preliminary declaration is replaced by the authorisation one (http://www.industrie.gouv.fr).
• ART authorises pilot trials on wireless local loop: ART has already received 17 applications for local loop trials. ART launched the preparatory phase for wireless local loop deployment in March. It will last for approximately one year. ART is now collecting applications for frequency allocations in these bands, to enable trials to begin as soon as possible.
• Internet over cable network: France Telecom's appeals rejected. The Court confirmed July 97 decision in favour of cable operators. France Telecom, which owns about 75% of the country's cable TV network will have to upgrade its networks as soon as possible.

• Confirmation of the condemnation of France Telecom to pay a FF 30 million fine for "abuse of dominant position" in 1992
• New telecom operators authorised: Telcite (RATP), MFS, Tele 2 and Rhodium SA (Pineau Printemps Redoute)
• France Telecom's rivals lodge a complaint to the EC concerning Universal Service. All the operators (including France Telecom) have to contribute to universal service in proportion to their traffic share. According to their small market share, France Telecom's competitors' contribution is less than FF100 million (1,6%). The European law does not forbid to finance universal service by new entrants, but France is the only country to charge new entrants so much.

• Regiocom wins a licence of nation-wide networks of digital professional radiocommunications
• Publication of a guide on the encryption regulation: this document gives the administrative process to use, provide, import and export encryption means
• France's response to the EC Green Paper on Convergence: the French key-players of telecom and media industry have given their comments to the EC Green Paper. All the respondents strongly moderate the perspectives of convergence between telecom and media industries.
• ART gave Lyonnaise Cable the right to provide Telephony services: France Telecom will have to modernise the Cable TV network and Lyonnaise Cable will have to pay for this modernisation.
• State Council's decisions on last single-digit access codes: it confirmed the ART's pre-selection procedure and recognised that the attribution of a single-digit access code does not discriminate operators which have to accept 4-digits prefixes.
• Consultation period on attribution of additional frequency band to mobile operators

• Bouygues Telecom authorised to experiment 900Mhz
• ART sets the deadline for the launch of the Internet access service over the Paris cable TV network (end of January 1999)
• ART declined a juridiction concerning telematics services contents

• Two more licences awarded on August 14 to EconoPhone France (US long distance telecom operator who plans to offer nationwide long distance telephony, pre-paid cards and services to operators in France) and Interoute Communications France (British private operator who offers to international operators a London-based service of exchange of bandwidth capacities.). 38 licences have already been awarded in France since the opening of the competition in the telephone industry. 13 additional licences are examined by ART or already transmitted to the Ministry of Industry.
• ART launched a call for comments on setting up of Teleports in Paris area: it invites all key players to contribute to a study carried out by CRIL Ingénierie (Deadline: August 27 1998).

• ART authorised a France Telecom's field trial on wireless local loop around the city of Rennes. This trial will last until the end of March 1999. At this date, a report will be delivered to ART, dealing with the technical feasibility of the development of such systems and with usage of spectrum resources.
• ART authorises a France Telecom's field trial on wireless local loop: ART awarded in September 1998 27.55-27.72 Ghz and 28.27-28.35 Ghz frequency band to France Telecom for an experimentation of a point-to-multipoint system around the city of Rennes. This trial will last until the end of March 1999. At this date, the French public operator will have to deliver to ART a report dealing with the technical feasibility of the development of such systems and with usage of spectrum resources.
• A State Council's report on the regulation of the www "The Internet and the digital networks" has been published: it tries to make the distinction between what is related to the media industry and what is related to the telecom industry. The report asserts that the distinction is not based on technical criteria which would contrast point-to-point telecom services and point-to-multipoint media services, but is based on the nature of the communication. In one case, the message is available to the public, in the other case it is exclusively intended for one or several persons and is private. The report concludes that a specific legal framework for the Internet and the networks is not necessary but that the "self-regulation of players" must be combined with a cooperation of States to enforce the public interest. It also proposes to extend the duties of CNIL to follow this "self-regulation". An intergovernmental meeting is expected on this subject.
• ART launched a call for comments on 0800 numbers on a proposal. After discussions, ART decided that there was a need for clearer usage conditions for 08ABPQMCDU-format numbers, according to the type of service proposed and the price paid for the service. These numbers enable access to freephone and audiotex services.

Ministry in charge of Telecommunications (Posts and telecommunications direction)

ART
Authority of Telecommunications Regulation

ANF
National Agency of Frequencies

• General regulatory power (after consultation of the ART): preparation of bills; formal awarding of authorisation for networks opened to the public and for vocal telephony service providers
• Official representation of the government in international negotiations
• Supervision of the public service e.g. universal service obligations
• Supervision of France Telecom

• Approval of main public networks operators’ catalogue of interconnection
• Settlement of interconnection litigation and infrastructures sharing
• Allocation of resources (frequencies, numbering, access rights)
• Authorisations for independent networks
• Investigations about requests of licence (in particular authorisation for networks opened to the public and for vocal telephony service providers
• Provision of advises on technical and economic issues (contributions for universal service funding, promotion of interconnection, numbering, etc.)
• Supervision and regulation of the competition

• Planning, forecasts and management of the radio spectrum
• Organisation and co-ordination of frequencies use by being a one-stop-shop for uses affected with disturbances
• Management of a radio spectrum development fund to make frequencies usage easier
• Awarding frequencies to administrations and independent administrative authorities
• Preparation of France’s position in International negotiations on frequencies
• Jamming issues

• Six new licences awarded by ART (see details below).

• Colt Telecom against EPAD (final episode): Colt did not get satisfaction in its complaint against EPAD.

• Local authorities and public telecom markets: according to two Decrees of February and August 1998, if a local authority wants to put an end to its unlimited period contract with the historical public operator (France Telecom), it will have to launch a call for tenders (for every more than FF 330,000 contract) in order not to prevent the competition on telecommunication services, even if the final choice turns out to be France Telecom.

• Approval of France Telecom's special rates for schools Internet access: on September 29, 1998, Cegetel has unveiled his offer for school Internet access, called "Internet Ecoles" and which is qui te the same as France Telecom's. The fact that Cegetel can offer a similar service puts an end to the legal action against France Telecom.

• Forum on mobile telephony issues open on October 12 on ART's web site: it can be considered as a "call for ideas" from consumers on contracts, tariffs, service quality and technological development in mobile telephony. A workshop on "Consumers and mobile telephony" will follow in January 1999.

• ART communication on made-to-measure France Telecom's offer for large companies: ART has clarified the current regulation on this subject and announced that it will ask the advice of the Competition Council.

• The Competition Council of the Minister of Economy and Finance approved the purchase of Havas by Vivendi -ex-CGE) considering that the merger was not anticompetitive.

• A report from the French Parliamentary delegation to the European Union against an European project of directive on IPRs: the report approves the idea of a European harmonisation in the domain of IPRs, but stresses that the project of directive does not guarantee a sufficient level of protection.

• Five new licences awarded by ART (see details below).

• ART extends the pilot trials on wireless local loop: on November 25, ART announced that it will extend the period of pilot trials on wireless local loop until the end of 1999. Today, about ten companies are engaged in about 15 pilot trials. ART considers that the local loop is one of the most important factor for the introduction of an effective competition in the telecommunication sector. It announced that it will propose in the coming months a final action plan for the implementation of this technology, on the basis of the pilot trials' results. Permanent licences of wireless local loop will be then issued.

• New sell-off of France Telecom: the Government launched a second phase in the partial privatisation of France Telecom. The sale amounts at 5% stake of the incumbent operator. It is expected to yield about FF36 bn for the State and FF23 bn for the France Telecom. At the end of this sale, 33% of France Telecom's capital will be on the stock exchange, France Telecom employees will own 3% and Deutsch Telekom 2%.