France’s competition authority has defended the country’s MVNOs in a case brought by industry group Alternative Mobile by requiring MNOs to provide 4G wholesale offers before the MNOs launch their own 4G retail services. The MVNOs must be able to offer 4G services at the same time as the MNOs. Under the terms of the MNOs’ 4G licences, network operators made commitments to not harm the commercial freedom of MVNOs, to welcome full MVNOs on their networks, to agree to any reasonable access request and to practice reasonable pricing.
The competition authority also stated that the pricing and technical offers made to MVNOs in 3G services seem to limit their capacity to react and compete effectively with MNOs on the retail market. Even though there is an economically viable space for MVNOs in the prepaid and classic services segments, they do not seem to be able to reproduce at a minimal profit margin low-cost plans, particularly the EUR 19.99 a month unlimited plans currently offered by the four MNOs.
