FRENCH TELCOS INTERVIEW OF ORANGE CEO IN FRENCH PRESS, DETAILS ON 4G WITH
* - FRENCH TELCOS INTERVIEW OF ORANGE CEO IN FRENCH PRESS, DETAILS ON 4G WITH THE LOW COST BRAND AT BOUYGUES: CEO of France Telecom mentions he's not ready to sign a 4G agreement with Iliad and even questions the renewal of the 2G/3G agreement (Mr Richard is very agressive with Mr Niel, ILD's CEO, he's lobbying for his job to be renewal in Q1 2014 we believe)) Separately, Bouygues confirms he will integrate the 4G in its low cost brand (B&YOU) WITH NO ADDITIONAL COST and France Telecom says it will do the same with its own low cost brand (Sosh) as soon as January... OUR VIEW: this confirms our view on the French telco market, NO GOOD NEWS AHEAD (4G is worth zero, price war at his top...). We do not believe though ORA will end its 2G/3G agreement with ILD as it would acc to us cut its FCF by E700m and should thus lead to a dividend cut.