French telecom regulator Arcep chairman Sebastien Soriano said in the wake of the unfruitful negotiations between Bouygues Telecom and Orange that mobile operators should cease their “thoughtless” price war, Les Echos reports. “If operators keep their nerve and avoid going into unconsidered price wars, the market is viable with four. Promotions worry us. A little bit is good but too much... beware!”
Soriano said he hoped there would be a bit of restraint in the next few months. If prices plummet, operators will lose margins necessary for investment. He cautioned against artificially low prices resulting in poor quality, adding that fixed and mobile telecom are part of France’s infrastructure sector, which is fuelled by EUR 7 billion of annual investments.
Arcep calls for “intelligent investment” and advocates network mutualisation in rural areas. It has put SFR and Bouygues Telecom on notice to fulfil their LTE coverage obligations in sparsely populated areas.
