268
Annual Report -
2013
-
Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 14. Intangible and tangible assets of telecom operations
(in millions of euros)
December 31, 2012
SFR
GVT
Maroc
Telecom
Group
Total
Other intangible assets, net
Software
1,112
56
182
1,350
Telecom licenses
(a)
2,002
-
147
2,149
Customer bases
152
72
2
226
Trade names
-
117
1
118
Other
816
13
50
879
4,082
258
382
4,722
Property, plant and equipment, net
Land
97
-
131
228
Buildings
1,182
16
315
1,513
Equipment and machinery
2,117
1,885
1,747
5,749
Construction-in-progress
314
-
-
314
Other
758
334
97
1,189
4,468
2,235
2,290
8,993
Intangible and tangible assets of telecom operations, net
8,550
2,493
2,672
13,715
(a)
SFR holds licenses for its networks and for the supply of its telecommunications services in France, for a 15-year period for GSM (between
March 2006 and March 2021) and a 20-year period for both UMTS (between August 2001 and August 2021) and LTE (between January 2012
and January 2032), with the following financial conditions:
–– for the GSM license, an annual payment over 15 years comprised of a (i) fixed portion in an amount of €25 million for each year (capitalized
over the period based on a present value of €278 million in 2006) and (ii) a variable portion equal to 1% of the yearly revenues generated
by this activity;
–– for the UMTS license, the fixed amount paid in 2001 (€619 million) was recorded as an intangible asset and the variable part of the fee
is equal to 1% of the yearly revenues generated by this activity. Moreover, as part of this license, SFR acquired new spectrum for €300 million
in June 2010, over a 20-year period; and
–– for the LTE licenses, the fixed amounts paid in October 2011 (€150 million) and January 2012 (€1,065 million), respectively, were recorded as
intangible assets at the grant date of spectrum brand published in the “Journal Officiel” in October 2011 and January 2012, and the variable
portion of the fee is equal to 1% of the yearly revenues generated by this activity.
The variable portions of the fees that cannot be reliably determined are not recorded in the Statement of Financial Position. They are recorded
as an expense, when incurred.
SFR’s network coverage commitments related
to telecommunication licenses
On November 30, 2009, the “Autorité de Régulation des
Communications Electroniques et des Postes” or “Arcep” (the
French Telecommunications Regulatory Agency) addressed a
notice to SFR regarding its compliance in relation to the UMTS
network coverage of the French metropolitan population: 99.3% by
December 31, 2013. As of December 31, 2013, SFR met its network
coverage commitments.
As part of the grant of the first band of LTE spectrum in
October 2011, SFR has committed to ensure a specific coverage rate
for the French metropolitan population: 25% by October 11, 2015,
60% by October 11, 2019, and 75% by October 11, 2023.
As part of the grant of the second band of LTE spectrum in
January 2012, SFR has committed to comply with the following
obligations:
(i)
SFR is required to provide the following very high-speed mobile
network coverage:
–– coverage of 98% of the French metropolitan population by
January 2024 and 99.6% by January 2027,
–– coverage in the priority zone (approximately 18% of the French
metropolitan population and 63% of the territory): within
this zone, SFR is required to cover 40% of the population by
January 2017 and 90% of the population by January 2022,
–– coverage obligations at a departmental level: SFR has to
cover 90% of the population of each French department by
January 2024, and 95% of the population of each French
department by January 2027;
(ii)
SFR and Bouygues Telecom have a mutual network sharing or
spectrum pooling obligation in the priority zone;
(iii)
SFR has an obligation to offer national roaming to Free Mobile
within the priority zone upon building of its own 2.6 GHz network
covering at least 25% of the French population provided that it
has not entered into a national roaming agreement with another
operator; and
(iv)
SFR has a joint coverage obligation with the other 800 MHz license
holders to cover the hot-spots that have been identified by the
French administration within the framework of the “white zones”
program (beyond 98% of the population) within 15 years.
