Summary notification form relating to a draft decision of the

Autorité de régulation des communications électroniques et des postes (ARCEP)

according to article 7(3) of the “framework directive” 2002/21/EC

The present notification concerns the specifications of the cost accounting and accounting separation obligations imposed to TDF during the market analysis process in ARCEP’s decision n° 06-0161 (dated April 6th, 2006) on the obligations imposed to TDF as a SMP operator on the upstream wholesale market for terrestrial TV transmission services.

The present draft decision takes also into account the comments received from the national public consultation process opened from November 30th 2007 to January 7th 2008. The answers from the actors of the sector to the public consultation, which were declared as not covered by business confidentiality, and a summary are published on ARCEP’s website.

Section I «Context and regulatory framework» recalls the current regulatory framework and the contexts and justifications provided for imposing cost accounting and accounting separation obligations to TDF.

Section II «TDF’s cost accounting obligation» describes the main lines for TDF’s cost accounting system. Accounting restitutions necessary to achieve the regulatory objectives are described and justified. Measures concerning transmission, audit and publication of these restitutions are specified.

Section III «TDF’s accounting separation obligation» describes the accounting separation system. TDF retail activities are constrained to provision themselves with TDF wholesale offers whenever these later are part of the regulated wholesale market. These internal cessions are specified in protocols that TDF has to transmit to ARCEP in a real-time manner. Section III also describes the separated accounts and the transfer prices system to be implemented. Measures concerning transmission, audit and publication of these restitutions are specified.

  1. Context and regulatory framework

I-1. New regulatory and legal framework

I-2. Accounting obligations imposed to TDF

I-3. Adoption and validity period of the decision

  1. TDF’s cost accounting obligations

II-1. Accounting information principles

II-1.1. Principles of accounting information treatment

II-1.2. Costs allocation methods

II-1.3. Costs evaluation methods

II-1.4. Cost of capital employed

II-2. Implementation of TDF’s cost accounting obligation

II-2.1. TDF’s cost accounting system description and costs allocation methodologies

II-2.2. Network elements costing

II-2.3. Overview of the differenttypes of products

II-4. Accounting statements transmission, audit and publication

II-4.1. Cost accounting system description

II-4.2. Transmission periodicity

II-4.3. Audit

II-4.4. Summary

  1. TDF’s accounting separation obligation

III-1. General principle of the accounting separation system

III-1.1. Taking account of the non-discrimination obligation

III-1.2. Legal ground for internal cession transparency

III-1.3. Accounting separation system

III-2. Internal cessions protocols and transfer prices system

III-2.1. Definition of the protocols

III-2.2. Principals

III-2.3. Protocols : in order to allow the establishment of separated accounts

III-2.4. Publication

III-3. TDF’s separated accounts

III-3.1. Separated accounts perimeter

III-3.2. Separated accounts format

III-3.3. Production activity account and reconciliation with social accounts

III-4. Accounting separation statements transmission, audit and publication

III-4.1. Transmission

III-4.2. Audit

III-4.3. Implementation timetable

III-4.4. Publication

III-4.5. Summary