French telecom authority Arcep is assessing an agreement between Orange and Free Mobile, under which the two network operators will share and build tower infrastructure across rural areas, reports Le Figaro. While not confirmed, news of a possible collaboration has been picked up by the French press at different times in recent years, and an official statement on the subject could now be imminent. According to La Tribune, the partnership will concern passive infrastructure in areas affected by grey and white spots, covering 18 percent of the population and representing 63 percent of the country's landmass.
A preliminary five-year agreement was reportedly signed in March 2019, but the deal has yet to be finalised. The context paving the way to the Orange-Free tie-up lies in the so-called 'New Deal' mobile coverage programme agreed with the government in early 2018, with the aim to accelerate the arrival of LTE in low density population areas.
The regulatory framework linked to this programme favours the sharing of infrastructure to remove grey and white spots. Additionally, Arcep’s policies have also been mindful of the position of Free as fourth entrant in the market. Sebastien Soriano, president of Arcep, told Le Figaro earlier this week that a real asymmetry remains in the mobile market "between Bouygues and SFR on one side sharing part of their networks, and Free, which deploys alone".
It is unclear whether the Orange-Free tie-up in rural areas goes beyond passive infrastructure or tackles the coverage obligations that the operators will face as 5G licence holders. As part of the forthcoming spectrum auction, Arcep has set specific targets to ensure a significant 5G deployment in regions with low population density, asking mobile networks to have around 20-25 percent of sites in these locations by 2025.
