To ensure a nationwide network coverage, telecom operators need to deploy highly located antennas called towers. These towers can be the property of the telecom operators themselves or belong to specialized tower companies like TDF. The tower companies rent the towers to telecom operators allowing them to set up their antennas. TDF has been identified as a potentially dominant actor on the French market of tower companies.

The French Competition Authority (Autorité de la concurrence) considers that the important duration of the contracts and the strongly restrictive termination clauses (only a few sites per year) are likely to have a foreclosing effect on the market by making it difficult for TDF’s competitors to sign hosting contracts with mobile operators.

Following the initiation of a procedure before the French Competition Authority by FPS Towers, TDF offered to reduce the duration of the tower rental contracts and as well as to loosen the grounds for anticipated termination.

The French Competition Authority launched a market consultation to establish whether the proposals made by TDF are sufficient to prevent the potential breach to the competition rules. All actors on the market are invited to participate whether they are telecom operators, tower site owners or service providers? Interested third parties may submit their observations on TDF’s proposals until March 3rd 2015.

Pursuant to the market test, the French Competition Authority will determine whether the proposals are sufficient or whether contentious action must be undertaken.