Watchdog warns on fiber optic competition

France’s top watchdog has called for a review next year of competition on new fiber optic telecoms networks being rolled out, and suggested that strong steps could be taken if there was not enough consumer choice.

The competition authority has asked the telecoms regulator, Arcep, to prepare the ground for a possible operational unbundling of France Telecom’s monopoly network business from the commercial operation – although such a move is not currently envisaged. This will enable the regulator to use the “new toolbox” of powers regulators will enjoy from May under European Union rules. The watchdog also recommended that in 18 months’ time Arcep evaluate the effectiveness of regulation in encouraging competition on the fibre optic network. People close to the subject said this was a clear warning to France’s incumbent operator that the development of competition would be closely monitored.