Free proved its ability to disrupt the market in ADSL

December 28, 2011 12:00 AM
Free proved its ability to disrupt the market in ADSL

This time it's done: Free filed yesterday, his candidature file for the fourth mobile licence, with a day in advance on the date limit. Two trucks UPS, carrying five boxes in which were stored the thousands of pages of the book arrived yesterday morning, around 9: 30 pm in the premises of the authority of regulation of electronic communications and posts (Arcep), in Paris, behind the Montparnasse train station.

It is only today ' today at noon, that leaders of Iliad, the home of Free, be safe and some to be the only candidates to this ticket for entry into one of the largest European markets. But, after withdrawal of the race of Bolloré, Virgin Mobile, Numericable and Orascom, Free has all chances to be only one... except coup de theatre of last minute. Even at the Arcep, it does not believe in a concurrent application. In any case, yesterday, true to his reputation of conformist, Free announced color: his candidacy is intended to "respond to the high expectations of consumers with offers simpler, cheaper and more innovative."

Free proved its ability to disrupt the market in ADSL. But, regarding its ambitions in the mobile, is not to know nor on the contents of the folder, ultra-détaillé, but the secret was well kept, Orange, SFR and Bouygues Telecom being on the lookout.

Decision before Christmas

Just known that Iliad plans to achieve operational equilibrium five years after the launch of the services, as well as the leaders told a telephone conference with analysts. Over the period, Iliad plans to lose in the mobile 350 million euros. For memory, Bouygues Telecom has created seven years prior to release its first operational profits.

The ball is now in the camp of Arcep, responsible for driving the selection procedure. "If we have a record to be considered, the decision will be made before Christmas", declared Jean - Ludovic Silicani, President of the regulator. For at least two months, the technical services of Arcep will examine thousands of pages of the book of Iliad.

Commitment to pay 240 million euros - i.e. the price of the license - in addition, the application will be noted on 500, nine criteria: consistency and credibility of the project, service offerings and tariff offers, the extent and speed of deployment of the network, the coherence and credibility of the business plan, the quality of service, relations with suppliers of services - i.e. virtual mobile operators (MVNO)., relations with consumers, actions to preserve the environment and, finally, employment. The first four criteria are more important, as they represent about 70 of the final mark. Conversely, employment commitments account for only 5 of the note. For the record, in 2001, while there were two candidates for two licences, Orange and SFR had respectively been 379 points and 410 points. But the weighting of the criteria was somewhat different. Orange had been less well noted on the rapidity of deployment of the network and "the credibility of the project".

Arcep may also declare the unsuccessful tender if the candidacy of Iliad is not considered good enough. But the regulator will have, in this case, explain why it is not selected. And Xavier Niel, the founder of Iliad, is bound to recall that mid-September 2009, the President of the Republic was said he "reserved" and "skeptical" about the arrival of a fourth mobile operator.