1. Transatlantic Dialogue Montpellier France 22 November 2005 Jacques Champeaux France Telecom The European Regulatory Framework : Present and Future

2. France Mobile: 21.7 millions Fixed: 33.6 millions Internet: 5.6 millions Spain Mobile: 9.7 millions Fixed: 0.6 million Internet: 1.3 million United Kingdom Mobile: 14.5 millions Internet: 2.1 millions Poland Mobile: 9.1 millions Fixed: 11.2 millions Internet: 1.6 million Number of customers at the end of September France Telecom European footprint Mobile Fixed Internet Transatlantic DialogueBroadband Conference

3. NRF: what were our expectations? A general framework based on Competiton Law analysis methods A clear stance in favor of a lighter and more efficient regulation  made us expect A fast implementation An harmonization on major issues A lighter regulation of retail markets Transatlantic DialogueBroadband Conference

4. What has gone wrong? A lengthy burdensome process with few results in the end No real harmonization An increase of regulatory bureaucratic constraints No clean analysis No incentives to invest Transatlantic DialogueBroadband Conference

5. Why has it gone wrong? Unclear objectives : protecting competition or competitors ? Who is driving ? EC, ERG, NRA ? Scope of regulation and competition law New concepts : full replicability, equivalence, ladder of investment Tendancy of NRAs to overregulate and micromanage the market A regulation designed for EU 15, not EU 25 Transatlantic DialogueBroadband Conference

6. Our challenges for the near future How to adapt our regulatory framework to create risk rewarding conditions to invest in new technologies and services:  Optical fiber and wireless broadband in the local loop  Fixed mobile convergence  NGN, interconnection in a full IP world  Integration of contents and networks Convergence opens competition to new un- regulated players: how to create a level-playing field? Transatlantic DialogueBroadband Conference