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In the weeks coming up to the iPhone5 launch last year after the new
phone was announced, most of Europe was buzzing with one common problem –
not one single carrier was running the correct frequency (1800MHz) in
order to provide the iPhone with 4G. Most of the carriers had built
2600MHz & 800MHz frequencies dedicated to 4G, as recommended by the
European Commission, and the news that the iPhone would only supports
1800MHz left a lot of carriers feeling, well, stupid. As the European
Commission quickly scrambled to announce that they recommended that
carriers plan to build 1800MHz networks for 4G, only one carrier in
France seemed positioned to have 4G in the next 12 months – Bouygues
Telecom.
Bouygues already had a 1800MHz network, that was used for the old 2G
networks – it has very few customers who depend on that network, so it
quickly petitioned to ‘convert’ that network into a 4G network, a
process that is much more simple than building an entirely new network.
Bouygues has been waiting patiently, expecting to hear back from
ARCEP (French TelCo regulators) in Q1 2013 with approval, but now it
seems that other operators, tied up in other operations, are trying to
stall the process as long as possible. Orange and SFR don’t plan to have
the network up until mid 2014, as noted in
Numerama,
and Free Mobile can’t get its own 3G network up, so they’re pushing for
2015 – Bouygues is ready to be up & running in a matter of months,
but now the other operators are saying “no no no, Bouygues can’t have a
monopoly on the iPhone5, that’s not fair.”
Now I know that Telecom Regulation is necessary, and taking
anti-monopolistic measures is necessary, but all these carriers are
making 4G not a priority, and they’re trying to stop Bouygues, who,
really, has nothing left to offer customers (they have been the hardest
hit by Free Mobile’s entrance into the market in the past year), and
need a little win like this.
Orange is making money off of renting Free Mobile its network,
who now counts 3.5 Million paying customers. SFR has been hit hard, but
they had stronger legs to stand on, competing with Orange in the
premium mobile category, and they’ve got their parent company Vivendi
who can bail them out (though Vivendi has been shopping around for
buyers for quite some time).
Xavier Niel said in an interview with LeFigaro this week that while
it would surely be a win for Bouygues Telecom to be the only operator
who can fully support the iPhone5, the company has other problems to
work out, like the fact that its bleeding employees who are lining up to
be ‘let go.’ He said “I bet they wish they had launched 4G before we
arrived,” citing Free Mobile as the reason Bouygues has lost nearly 1000
employees this past year – I have a feeling, in the back of his mind,
Niel is really saying “I sure hope Orange gets their 4G up fast, so we
can piggyback off of it.”
Personally, I hope ARCEP rules for a 2013 launch of the 1800MHz
network for Bouygues – not only am I a customer, but they could
definitely use something to differentiate themselves in the 4-player
market.