Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

French telecom regulator steps into dispute over Free Mobile's coverage

Critics say the new operator is not meeting the network coverage obligations of its 3G operating license

ARCEP, the French telecommunications regulator, has promised to investigate whether new network operator Free Mobile is still offering the level of coverage required by its license, following complaints by employees of rival networks. But it also warned the company's critics to stop whining, saying that the existing three network operators had all failed to meet their coverage obligations at launch.

Free Mobile expected to make waves when it barged into the French 3G market on Jan. 10 with a €20 ($26) plan offering unlimited voice, SMS and data, and another plan offering 60 minutes and 60 texts for €2 a month. It succeeded: Within days, rival Orange slashed the cost of its Sosh 24/7 unlimited voice and data plan from €39.90 to €24.90, and introduced a new plan at €9.90 with 120 minutes and unlimited texts and access to its Wi-Fi hotspots.

The impact of Free Mobile's launch could be felt across Europe, even though the company has no operations outside France. With many countries auctioning off spectrum to operate 4G mobile services over LTE (Long Term Evolution), new market entrants will be keeping a close eye on Free Mobile's low-cost business model. It may also affect mobile pricing across Europe by providing a new benchmark for regulators, particularly the European Commission in its mission to lower the cost of roaming: One element keeping roaming fees high is the cost of network access in the country visited.

While customers might be happy with falling prices, employees of the incumbent networks are less so, fearing price cuts will lead to job cuts. The trade union representing them, CFE-CGC & Unsa Télécoms, wrote to the French Postal and Electronic Communications Regulatory Authority (ARCEP) on Thursday, repeating local media allegations that Free Mobile might have shut down some of its transmission towers and asking the regulator to investigate whether the company still met the coverage condition in its operating license.

ARCEP responded Friday, saying that it had examined the network coverage model provided by Free Mobile on Nov. 10, and verified it over the following month by taking 10,000 measurements in the field, following the same procedure as it had for the existing three 3G network operators. Free Mobile had met its coverage obligations, ARCEP said, and "no concrete element has been brought to the Authority's attention that would back up the allegations in the media, and repeated in the letter from the trade unions."

It also reminded critics that Orange France, SFR and Bouygues Telecom, the existing three 3G operators, failed to meet the initial coverage obligations listed in the licenses issued to them in 2001 and 2002.

"If ARCEP tolerated that state of affairs at the time, it was because of the technical and economic difficulties cited by the operators themselves," the regulator said. It also said it wanted to "remind users that launching a new mobile telephone network is a complex operation that can require adjustments and fine tuning. These are legitimate provided the operator has met its coverage obligations, and provided they do not alter the service that customers receive."

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Bouygues Telecom, etwork, European Commission, IDG, Orange, SFR
References show all

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: 3g, Free Mobile, government, mobile, orange, Regulation, Telecommunication
Latest Blog Posts
Whitepapers
  • Consolidated Storage for Virtualised Server Environments
    This research brief is based on a recent Tech Target survey with more than 200 storage administrators and IT professionals in mid-sized and enterprise-class companies, and focuses on how these decision-makers view the storage-related challenges that result from server virtualisation. See the results.
    Learn more »
  • Unified Communications Strategy Guide
    Articles include: How to ensure a successful UC project; Five reasons to set up unified communications; Unified communications: Is your network ready?; How to get the most from unified communications. Read this Computerworld Strategy Guide.
    Learn more »
  • Providing effective endpoint management at the lowest total cost
    Endpoints, otherwise known as servers, workstations, laptops, mobile devices, and virtually any other network-connected device, are critical components that enable business to be transacted. Properly implemented, endpoint management ensures continuous compliance with IT policies, regardless of where the machines are located and what type of network they are connected to.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.