Bouygues seeks EUR 2 bln compensation from Orange-Free deal

News Wireless France 9 DEC 2015
Bouygues seeks EUR 2 bln compensation from Orange-Free deal

Bouygues Telecom CEO Olivier Roussat has written to French prime minister Manuel Valls seeking EUR 2.285 billion in compensation for damages related to Free Mobile’s market entry in 2012 and the 2G/3G network roaming agreement with Orange until January 2018, reports Les Echos. In the letter reviewed by the newspaper, Bouygues denounces telecom regulator Arcep’s “illegal” failure to not have established the conditions for the implementation and conclusion of the agreement from the outset. Bouygues bases its assertion on an October decision by the State Council that found that Arcep incorrectly decided that it was unable to examine the roaming agreement. 

The operator has been pleading for 2 years for a stricter framing of the agreement between Free and Orange by setting a timeframe for network sharing to end by geographic areas. Bouygues lists seven damages that add up to EUR 2.285 billion, the biggest of which is EUR 1.166 billion in lost revenue and margins since Free Mobile entered the market, plus EUR 527 million for 2015-2018. The company declined to comment on the matter.

Categories:

Mobile

Companies:

Bouygues Telecom,  Orange France,  Arcep,  Free Mobile

Countries:

France

Tags:

Voice services, Data services, GPRS, 3G, Messaging, Regulations

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