Free Mobile competitors could easily anticipate

The Chairman of Arcep, auditioned by a Commission of the National Assembly, returned to the entry of Free Mobile telecoms market.

Free Mobile competitors have, in the past months, regularly turned to - regulator Arcep for telecoms - to complain about the conditions enjoyed by the new entrant on the French market of mobile telephony. Arcep which, meanwhile, was very happy to see more competition to interfere in the market, since it benefits directly to the Subscriber. Accused of not sufficiently well assessed the impact of the arrival of a fourth operator on the market, Arcep held to be explained once again by the voice of its president Jean-Ludovic Silicani, at a hearing before the Commission of Economic Affairs of the National Assembly.

Jean-Ludovic Silicani began by recalling an indisputable fact: "everywhere in Europe, we find four fixed/mobile operators." All studies show that the price of the mobile France, was higher than elsewhere. "And the choice of the place to a new entrant was made as early as 2000, when the decision on the distribution of 3 G frequencies".

From there, according to him, nobody can say taking courses. The president of Arcep also does not hesitate to explain that those who complain today, could handle the situation differently. "If they had thought in 2006/2008 to spend a full-MVNO with Free agreement, the issue would not have arisen and they would not be in this situation, perhaps Free have not deployed fourth mobile network." "It is a choice on their part: they did everything to block the development of the full MVNO in France while they were abroad the increasing" he says.

As the price of the licence paid by Free Mobile, competitors believe bradee, yet Jean-Ludovic Silicani presents things flat: "If the conditions were so favourable, if the price was so low, other operators have jumped at the opportunity to be a candidate." "However, despite our efforts, a single operator competed". The price paid for the license is logical, because Free Mobile has a lower volume of frequencies. Not to mention that the new operator arrived very late on its competitors.

Finally, the last difficult question concerns the consequences of the arrival of Free Mobile employment, since its competitors dismiss to restore their margins, and relocate more: "I remember that the sector is facing a trend decline in its numbers, so is somewhat easy to do on the back of Free (...)" For direct employment we are to 1 600 posts deleted via voluntary departures. For indirect jobs, depends on the strategies of operators but 1,500 jobs could be affected (...) Meanwhile, Free have recently created 2,000 jobs including via the launch of two centres of calls in the Paris region. "In all we have 3,000 in losses and 2,000 in gains so the balance is negative 1 000 jobs".

Free Mobile could be punished by Arcep

Alternative Mobile has, on behalf of the MVNO, before the Arcep regards wholesale offers Free mobile virtual operators...

The conditions for the entry of Free Mobile in the mobile telephony market have been defined by Arcep - Telecoms Regulator - and negotiated in exchange for commitments specific (and ambitious) to animate the competition. If, in terms of rates applied, Free Mobile has fulfilled its commitments and even a little more than that by planting a beautiful mess (the first results are visible, with an average revenue per user down), this is hardly the case with respect to offers of large virtual operators, the famous MVNO. Thus, Alternative Mobile seized Arcep comes formally to initiate a procedure against Free Mobile for breaches of commitments.

It must be said that the wholesale rates proposed by Free Mobile in the MVNO are such that they do not really to propose offers more interesting than those already placed on the market by the néo-opérateur. Thus, the monthly access subscription is billed at least €2 duty-free, while Free Mobile offers its customers to package to €2 per month TTC. According to Alternative Mobile, this demonstrates that Free Mobile does not take its commitments of animation of the competition, leaving no room for manoeuvre to the MVNO, as explained already here: Free Mobile does stimulate competition or kill the MVNO?

Alternative Mobile welcomes the decision of Arcep to have put in place a procedure and hope that it will go to an end to punish Free Mobile and force it to honour its commitments so that the MVNO who would rely on its network to offer their offers, can do so at competitive rates.