Thursday, March 3, 2011

Mobile: Orange Free gives national coverage

Orange and Iliad, the parent of Free (whose leader, Xavier Niel is a group of shareholders Tech News Buzz) signed an agreement Wednesday, March 2 roaming in mobile networks on its second and third generation (2G and 3G). The signing of this agreement is deemed crucial for the start of Free Mobile, enabling it to provide for its future customers access to the network throughout the territory as soon as they covered the quarter with its own antennas.

"This agreement will be effective when Free Mobile, which is committed in its license in 2018 to deploy its own network covering at least 90% of the population will have coverage of at least 25% of the population, "adds Iliad and Orange, in a statement. This contract should refer to the incumbent "at least one billion euros in revenue over six years" under the contract, "said CEO of Iliad, Maxime Lombardini, told Agence France-Presse.

Having achieved 240 million euros at end 2009 as the fourth mobile license, Iliad account opening service Free Mobile in early 2012. However, the group should reach agreement with other operators to deploy its network. Stumbling negotiations, its CEO Niel had threatened to fall to sue the operators Orange, SFR and Bouygues Telecom 3G roaming, if they continued to oppose him "a blunt-receiving." ARCEP SATISFIED While data traffic is exploding on telecom networks, with the spread of smartphones, 3G is necessary, especially for distributing video.

There was, conversely, little concern about the signing of an agreement on 2G, mandatory for competitors in the context of the regulations prescribed by Arcep, the industry regulator. The Competition Authority had estimated in June that the signing of an agreement between Free 3G and one of his rivals would reduce the risk of distortion of competition in France.

"This agreement will give new momentum to the mobile market in France, which still has significant potential for growth," welcomes the Regulatory Authority for Electronic Communications and Posts (ARCEP) in a statement. But other observers believe that this agreement marks "a lack of strategy of France Telecom." "Free is the main competitor of Orange, Orange and offered its networks.

When we know the effectiveness of the marketing strategy of Free, one wonders about the decision," said a senior equity sales broker in Paris , quoted by Reuters.

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