What role for the competition authority? Consequences for the network investment and prices in the mobile?
The competition authority can it block the redemption?
The Competition Authority is the master of the game in this case. It alone can block the acquisition of Bouygues Telecom SFR. The European Commission should not a priori have a say. Last year, when it bought SFR by Numericable, the competition watchdog gave its approval subject to conditions. He specifically imposed asset sales Numericable and the opening of its broadband network to competitors.
On Bouygues and SFR, Numericable, SFR has already anticipated that it may impose the retrocession of part of the Bouygues Telecom network. He planned to sell it to Free. The authority could also find fault with the omnipotence of the future together on the business market. Emmanuel Macron, he who is not favorable to the operation, has a little leeway. Once the decision to the authority of the famous competition, it can be broken and impose his own under certain conditions. The law provides that it may “ approve ” to the operation “ for reasons of general interest other than maintaining competition ” as “ industrial development, business competitiveness in terms of international competition, or the creation or maintenance of employment . ” Such lethal weapon however, has never been used in the history of concentrations.
What consequences on the investments of the operators?
This is one of the main concerns of the government. Consolidation she will not to mobilize operators in the expense of investment in very high speed networks? The economy minister had mentioned it a few weeks ago, he recalled Sunday. It should certainly insist on the subject Tuesday during his interview with Patrick Drahi.
For the state, the stakes are high. He multiplied the commitments with operators on their ability to cover the territory in new infrastructure. The government’s high level flow provides for total coverage of the country by 2022, with a mixture of initiatives of private operators, local communities and the state. In mobile, the authorities have also obtained an agreement from the four actors on the cover of the white areas by 2016 for 2G, 2017 for 3G. Above all, the government fears that the tender on the frequencies of the 700 MHz band, which he desired to remove at least 2.5 billion euros, is questioned. The auction, which ARCEP has just given terms and to be held in November, have been designed for four operators. If two of them are engaged in a merger process, will they still inclined to put hundreds of millions of euros on the table? “ There will be no problem on the 700 MHz. Everything will be sold, because everyone needs it “wants to believe an industry expert.
What impact on prices?
back to square one. If the acquisition of Bouygues Telecom, SFR with Numericable materializes, France will turn up again with three telecom operators. The situation will be similar to the area before the arrival of Free in 2012. For many observers, this is the prelude to a rise in prices. This is what fear consumer protection associations. For CLCV, “ it is essential to maintain greater competition between operators, since it is the only way to encourage people to innovate and especially to limit their margins to the benefit of our purchasing power “. The UFC-Que Choisir agrees and calls for maintaining the intensity of competition is guaranteed by the regulatory authorities.
However, with the exception of Austria, examples of price inflation after the merger are not legion. If the acquisition of Bouygues Telecom may terminate early price war initiated by the latter in the fixed, not sure he incites Free to toe the line in the mobile. Faced with two new behemoths, the troublemaker telecoms will have at heart to play its role of challenger and gain market share. With new frequencies, new offices and shops, it will have the weapons to fight and make life difficult for his two competitors, who expect nothing less from him.
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