By William Horobin
PARIS--Iliad SA's (ILD.FR) founder said Saturday its budget
mobile operator Free Mobile's roaming contract with France Telecom
SA's (FTE) Orange will cost well above one billion euros ($1.3
billion).
The launch of France's fourth mobile operator Free Mobile in
January triggered a price war with existing operators Orange,
Bouygues SA's (EN.FR) Bouygues Telecom and Vivendi SA's (VIV.FR)
SFR.
As it launched, Free Mobile committed to providing network
coverage to 27% of France. For the remaining coverage, it signed a
network-sharing agreement with Orange.
"It's a roaming contract that will cost us very significantly
more than one billion" euros, Iliad founder Xavier Niel said on
French radio RTL. "The deployment of our network should cost us the
same amount," he said, adding this is now the company's
priority.
Speaking during the same radio program, France Telecom Chief
Executive Stephane Richard said the deal has been perfectly
respected by both sides.
Write to William Horobin at william.horobin@dowjones.com
