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Lucia A Keegan  11/08/2006 02:46:19 PM  From  DB/Inbox:  Lucia A Keegan

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UNCLAS    SENSITIVE     PARIS 07119

SIPDIS
cxparis:
    ACTION: ECON
    INFO:   SCIO TRDO ESCI FCS POL ORA AMB AGR LABO DCM
            ECNO ENGO UNESCO ECSO SCI

DISSEMINATION: ECONOUT /1
CHARGE: PROG

APPROVED: ECON:SDWYER
DRAFTED: ECON:HSULLIVAN
CLEARED: NONE

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RR RUEHC RUCPDOC RUEAFCC RUEAWJA RUCNMEM
DE RUEHFR #7119/01 3031718
ZNR UUUUU ZZH
R 301718Z OCT 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 2692
INFO RUCPDOC/USDOC WASHDC
RUEAFCC/FCC WASHDC
RUEAWJA/DEPARTMENT OF JUSTICE WASHDC
RUCNMEM/EU MEMBER STATES COLLECTIVE

UNCLAS SECTION 01 OF 02 PARIS 007119 
 
SIPDIS 
 
SENSITIVE 
 
STATE EB/CIP AND EUR/WE 
PLEASE PASS TO USTR JMCHALE AND KSCHAGRIN 
FCC FOR TWEISLER 
COMMERCE FOR NTIA 
JUSTICE FOR KWILLNER 
 
E.O. 12958: N/A 
TAGS: ECPS ECON FR
SUBJECT: FRENCH TELECOM DEVELOPMENTS FROM ENTERPRISE DIRECTORATE 
PERSPECTIVE 
 
NOT FOR INTERNET DISTRIBUTION 
 
REF: PARIS 6811 
 
¶1. (SBU) Summary:  GOF Ministry of Economy, Finance and Industry 
Information and Communications Technologies Director Emmanuel Gabla 
told us on October 19 that he was discussing with EU counterparts 
whether to regulate next generation fiber networks used for 
broadband and cable TV.  Gabla admitted the U.S. had encouraged 
investment in building such networks by announcing that it would not 
force operators to provide access to competitors.  Gabla informed us 
that the Senate will debate a bill on November 20-22 that would 
foster television over mobile phone networks, introduce high 
definition television (HDTV), and replace analog TV with digital TV 
by 2011.  Gabla said the GOF is united in its support for provisions 
in the new copyright legislation that mandate interoperability 
between different digital music players.  End summary. 
 
¶2. (SBU) On October 19, Econoff discussed next generation 
telecommunication networks, Internet neutrality, the possible merger 
of France's telecommunications and television regulators, changes in 
France's ICANN representative, and copyright legislation with 
Information and Communication Technologies Director Emmanuel Gabla. 
 
Next Generation Networks 
------------------------ 
¶3. (SBU) According to Gabla, the EU is discussing whether and how to 
regulate new fiber-optic broadband infrastructure.  Gabla noted that 
U.S. investment in such infrastructure was more advanced because USG 
made an early, public commitment not to regulate this area.  While 
Europe has taken note of this approach, most argue that the services 
provided over such networks are essentially the same as telephony 
and should be regulated as such.  Gabla said the decision will 
ultimately be made at the European, not member-state level.  The EU 
is also debating the implications this decision would have for 
universal service. 
 
Net Neutrality 
-------------- 
¶4. (SBU) Gabla said that French telecommunication firms are 
observing the debate in the U.S. regarding net neutrality with 
interest.  Europe is beginning to debate the issue as well, Gabla 
said.  He thought that companies arguing in favor of net neutrality, 
such as Google and Yahoo, made the more compelling arguments. 
 
CSA/ARCEP Merger 
---------------- 
¶5. (SBU) Gabla said an oft-discussed merger between French 
telecommunications regulator Autorite de Regulation des 
Communications Electroniques et des Postes (ARCEP) and Conseil 
Superieur de l'Audiovisuel (CSA) would not take place over the next 
year.  Such a change would require legislation. 
 
¶6. (SBU) Parliament is now considering a bill that would foster 
television broadcasting over mobile phones, allow for the 
introduction of high definition television (HDTV), and envision the 
replacement of analog television by digital TV in 2011.  Advisors in 
both the Prime Minister's and President's Offices had suggested the 
bill might also provide for the merger of the two organizations for 
better frequency management.  The CSA and ARCEP oppose such 
provisions, however, and the proposal does not appear in the current 
text of the bill.  Nor does Gabla think such a clause will be added, 
since the bill needs to be rushed through by February when the 
campaign for 2007 elections will begin in earnest.  Should the 
Socialists win, he thought, they may reconsider the merger since CSA 
leadership had been nominated by the right-of-center Union for a 
Popular Movement (UMP).  A merger might be a way of getting rid of 
the UMP nominees. 
 
ICANN 
----- 
¶7. (SBU) The GOF has chosen Bertrand de la Chapelle (former advisor 
to the French Minister for European Affairs and an organizer of the 
OpenWSIS Initiative) as its Internet Corporation for Assigned Names 
and Numbers (ICANN) Government Advisory Committee (GAC) 
representative.  Despite the change of representative, French 
priorities remain the same.  The GOF thinks the role of the GAC 
should be strengthened beyond that of an advisory body, and ICANN 
needs to internationalize.  The private and public sectors of all 
regions should participate in ICANN.  While the U.S. argues that 
ICANN should not be under the control of governments, Gabla said, 
the USG enjoys a disproportionate amount of influence on the body. 
Gabla said the EU was coordinating policy on this issue.  He said 
the French would continue to work productively with the U.S., as it 
has in the past, while continuing to lobby for change in a low-key 
way. 
Copyright Legislation 
--------------------- 
¶8. (SBU) Gabla said that while the Ministry of Culture has the lead 
in drafting technical measures in support of new copyright 
legislation (reftel), support for the principle of interoperability 
enjoys interagency support.  "We cannot accept fragmentation of the 
market.  You should not have to pay for the same music twice to play 
it on two different machines."  Gabla believes the present 
"fragmentation" encourages illegal downloading.  But Gabla said he 
understood U.S. concern over the negative implications of mandated 
interoperability for the intellectual property of affected firms. 
 
HOFMANN