France's competition authority has handed down a set of recommendations affecting incumbent operator France Telecom-Orange both positively and adversely. First of all, the body judges that cross-marketing should be allowed, including by Orange. Operators ought to be able to use their database of fixed-line customers to market mobile services and vice-versa. Under current regulations, Orange is prevented from doing so on grounds of its dominance in fixed network infrastructure. The operator has contested at length what it sees as a major disadvantage vis-a-vis its competitors. However, the competition authority has recommended that the government exclude from its national ultra high-speed programme Orange's cost-effective approach to boost speeds in rural areas by building DSL sub-switches closer to customers' homes. Rivals have criticised this system because it gives the incumbent an unfair advantage in bidding for local authority network contracts and sustains its dominance in such areas. Finally, in addressing competition issues regarding new quad-play services, the authority recommends that mobile network operators Orange, SFR and Bouygues Mobile open their 3G infrastructure to new entrant Free Mobile. This goes beyond Arcep's conditions which only require allowing roaming over their GSM and GPRS networks. Operators have already reacted to this recommendation which carries no legal weight but could push the regulator to increase their requirements. An Orange spokesperson told Les Echos, "When Free won its 3G licence in January it did not carry this obligation. It is strange to concede a new right to Free after only five months, when it did not pay much for its licence". The incumbent sees this as a disproportionate obligation and describes it as a "totally exhorbitant price for other operators to pay". According to the newspaper, Numericable and MVNO Virgin Mobile France, which had considered bidding for Frances's fourth mobile network licence, have written to Arcep to remind it that a 3G roaming obligation was never included in the first place.
