(Les Echos) Bouygues accuses Free of lying subscribers (Eng & French below)

Bouygues accuses Free of lying subscribers

Free Bouygues assigned before the Paris commercial court for "misleading commercial practice" .It is accused of reducing the rate of subscribers who consume more bandwidth before they reached a consumption of 3GB, violating a commercial promise.

New showdown between Bouygues and Free. Reportedly, the first is to attack the second before the Commercial Court of Paris, accusing him of "misleading commercial practice". A hearing will be held on 18 December.
The case concerns the network Free Orange leases under an agreement called "roaming". Free indeed uses a double network: his own and that of Orange. Allowing it to offer its offers on the entire territory before having completed the construction of its own infrastructure being deployed. Free but when using the network of the French incumbent operator, Bouygues accused of violating a promise to its customers: do not reduce their speed before reaching a consumption of 3GB. In other words, Free lie by not respecting their commitment: to provide guaranteed capacity of 3GB, beyond which the flow begins to be reduced.
"It is now established that when Free Mobile uses the Orange network, Free Mobile drastically reduces the flow of customers on certain types of services, even though they do not reach the consumption threshold that is attached to them," and finds the assignment, including "Les Echos" were aware. In so doing, Free keep under control the invoice that rule to Orange for the use of its network for the more a subscriber Free download data plus the amount donated by Free Orange is important. In total, Free pays between 500 and 700 million every year in Orange to use its network.
"Targeted Clamping"
And that's not all. Bouygues, which is based on several studies conducted by the UFC-Que Choisir, the cabinet and Directique 4GMark believes that Free practice "targeted clamping" of his Orange roaming network. It would primarily on the flow of subscribers who consume the most bandwidth, those who download videos for example. A very long wait time would be inflicted on the consumer, in order to discourage him to continue downloads.
For example, according to a Directique study, a video download time is over 12 hours on the network Orange Free roaming, while it is only 7 seconds on the Free network Free clean ... would do this since the end of 2012. In turn, consumer association UFC-Que Choisir had already noted "restrictions in the use of the Orange network" and without accusing anyone it had called regulatory authorities and judiciary to react.
Bouygues seems he seized on the ball. In his summons, he speaks of "deception". This is the biter: by launching its mobile offering in January 2012, Xavier Niel, founder of Free, himself had accused his rivals to take their subscribers "for pigeons!" Between the two operators is war since Free has landed in the mobile with very low prices, forcing all players in telecoms (SFR, Bouygues, Orange) to revise their prices downwards. Relations between Xavier Niel and Martin Bouygues, are very bad.
100 million loss
According Bouygues, "if the clamp had not occurred, Free Mobile should pass the real roaming costs in the price of its offerings, which would necessarily lead to offer higher prices," said the summons. The result, Bouygues, a "margin loss" that according to him should be compensated. The operator, which calls for the immediate cessation of all clamping practice, puts the damage at 100 million, at least. Only the commercial court is entitled to say whether or not the Free and practices have proven criminal.


FRENCH ARTICLE
Bouygues accuse Free de tromper ses abonnés


Bouygues a assigné Free devant le tribunal de commerce de Paris pour « pratique commerciale trompeuse ».Il l’accuse de réduire le débit de ses abonnés qui consomment le plus de bande passante avant qu’ils aient atteint une consommation de 3Go, violant ainsi une promesse commerciale.
Nouveau bras de fer entre Bouygues et Free. Selon nos informations, le premier vient d’attaquer le second devant le tribunal de commerce de Paris en l’accusant de « pratique commerciale trompeuse ». Une audience doit se tenir le 18 décembre.

L’affaire concerne le réseau que Free loue à Orange dans le cadre d’un accord dit d’« itinérance ». Free utilise en effet un double réseau : le sien et celui d’Orange. Ce qui lui permet de proposer ses offres sur l’ensemble du territoire avant même d’avoir achevé la construction de sa propre infrastructure en cours de déploiement. Mais lorsque Free utilise le réseau de l’opérateur historique français, Bouygues l’accuse de violer une promesse faite à ses abonnés : ne pas réduire leur débit avant d’avoir atteint une consommation de 3Go. En d’autres termes, Free leur mentirait en ne respectant pas son engagement : offrir une capacité garantie de 3Go, au-delà de laquelle le débit commence à être réduit.

« Il est désormais établi que lorsque Free Mobile utilise le réseau d’Orange, Free Mobile réduit drastiquement le débit de ses clients sur certains services identifiés, alors même que ces derniers n’ont pas atteint le seuil de consommation qui leur est fixé », constate ainsi l’assignation, dont « Les Echos » ont eu connaissance. Ce faisant, Free garderait sous contrôle la facture qu’il règle à Orange pour l’utilisation de son réseau car, plus un abonné Free télécharge de données, plus le montant reversé par Free à Orange est important. Au total, Free verse entre 500 et 700 millions tous les ans à Orange pour utiliser son réseau.

« Bridage ciblé »

Et ce n’est pas tout. Bouygues, qui s’appuie sur plusieurs études réalisées par l’UFC-Que Choisir, le cabinet Directique et 4GMark, estime que Free pratique un « bridage ciblé » de son réseau en itinérance d’Orange. Il porterait surtout sur le débit des abonnés qui consomment le plus de bande passante, ceux qui téléchargent des vidéos par exemple. Un temps d’attente très long serait infligé au consommateur, de façon à le décourager de poursuivre ses téléchargements.

A titre d’exemple, d’après une étude Directique, le temps de téléchargement d’une vidéo est supérieur à 12 heures sur le réseau Free en itinérance Orange, alors qu’il n’est que de 7 secondes sur le réseau de Free en propre... Free agirait de la sorte depuis la fin 2012. De son côté, l’association de consommateurs l’UFC-Que Choisir avait déjà relevé des « restrictions dans l’utilisation du réseau Orange » et, sans accuser qui que ce soit, avait appelé les autorités de régulation et judiciaires à réagir.

Bouygues a semble-t-il saisi la balle au bond. Dans son assignation, il parle de « tromperie ». C’est L’arroseur arrosé : en lançant son offre mobile en janvier 2012, Xavier Niel, le fondateur de Free, avait lui-même accusé ses rivaux de prendre leurs abonnés « pour des pigeons » ! Entre les deux opérateurs, c’est la guerre depuis que Free a débarqué dans le mobile avec des prix très bas, forçant tous les acteurs des télécoms (SFR, Bouygues, Orange) à revoir leurs tarifs à la baisse. Les relations entre Xavier Niel et Martin Bouygues, sont exécrables.

100 millions de préjudice

D’après Bouygues, « si le bridage n’avait pas eu lieu, Free Mobile aurait dû répercuter les véritables coûts d’itinérance dans le prix de ses offres, ce qui l’aurait nécessairement conduit à proposer des prix plus élevés », mentionne l’assignation. Il en résulte, pour Bouygues, une « perte de marge » qui doit selon lui être indemnisée. L’opérateur, qui réclame l’arrêt immédiat de toute pratique de bridage, chiffre le préjudice à 100 millions d’euros, au moins. Seul le tribunal de commerce est fondé à dire si oui ou non les pratiques de Free sont avérées et délictueuses

(BFW) *TELECOM ITALIA CEO: NOT STUDYING CAPITAL INCREASE

BN 11/25 13:39 *TELECOM ITALIA CEO: PREMATURE TO TALK ABOUT CAPITAL INCREASE
BN 11/25 13:37 *TELECOM ITALIA CEO PATUANO SPEAKS TO REPORTERS IN MILAN
BN 11/25 13:37 *TELECOM ITALIA CEO: NOT STUDYING CAPITAL INCREASE
*TELECOM ITALIA CEO: NOT STUDYING CAPITAL INCREASE
2014-11-25 13:38:00.157 GMT

--BRIAN LYSAGHT

-0- Nov/25/2014 13:38 GMT

>>> US Gapping up

Gapping up
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Other news: SCOK +16.6% (announced that its aboveground facility for the conversion of carbon dioxide into clean-burning syngas has achieved its initial production target), CAMT +10% (announced that its 3D Functional InkJet Technology system for PCB solder mask applications), ROYT +5.1% (announced a cash distribution to the holders of its units of beneficial interest of $0.07291 per unit, payable on December 12, 2014; 17% lower than the previous month), PBR +4.4% (receives SEC Subpoena, also upgraded to Buy from Neutral at Citigroup), GT +4.3% (Department of Commerce import duty update for Chinese tires), CCIH +1.9% (formed a strategic partnership with Aspera to provide best-performance high-speed data transmission services for large files), KGC +1.8% (still checking), LXU +1.7% (Starboard Value discloses 7.2% active stake in 13D filing), HTZ +1.6% (New President/CEO John Tague discloses purchase of 84,200 shares of common stock at $24.11 per share; holds 1 mln of options with $22.75 exercise price), LORL +0.9% (following late spike on potential Telestat deal), LB +0.9% (favorable mention on Monday's Mad Money)

Analyst comments: BYD +1.8% (upgraded to Neutral from Underperform at Macquarie), MDT +1.5% (target raised to $81 at RBC Capital Mkts), WPZ +0.6% (upgraded to Buy from Hold at Jefferies), SNY +0.5% (initiated with a Outperform at Exane BNP Paribas)

>>> US Gapping down

Gapping down
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Select metals/mining stocks trading lower: CLF -2.5% (also unfavorable mention on Monday's Mad Money), BHP -2.2%%, GFI -1.4%, RIO -1.1%, MT -0.9%


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Analyst comments: P -4.4% (downgraded to Underperform from Mkt Perform at FBR Capital), CYBR -2.8% (downgraded to Mkt Perform from Outperform at William Blair; downgraded to Neutral from Buy at Nomura), NFLX -0.9% (Hearing assumed with a Hold from a Buy at Stifel), ASML -0.5% (downgraded to Neutral from Buy at UBS), GSK -0.4% (initiated with a Underperform at Exane BNP Paribas)

NYT - Proposed Regulations Aim to Clamp Down on Smoking in China

In a country where some primary schools are known as “tobacco elementaries” for accepting money from tobacco companies and displaying slogans such as “Tobacco Makes You Accomplished and Smart,” the Chinese government has released draft of anti-tobacco regulations that for the first time would ban smoking in all indoor public places.

Also, for the first time, cigarette packages would have to prominently feature information about the dangers of smoking.

More than 300 million Chinese smoke, and hundreds of millions of others are exposed to secondhand smoke. A powerful domestic tobacco industry, much of it state owned, brings in trillions of renminbi in sales and tax revenue annually for the government. Cigarette prices have remained low, despite calls by the World Health Organization for the government to raise taxes on tobacco products to discourage smoking.

Reflecting smoking’s popularity in China — in public places such as hotels, restaurants, train stations, schools and hospitals — ashtrays are often found next to no-smoking signs. Finding a smoke-free restaurant, even in major cities such as Beijing or Chengdu, is difficult.

Opponents of smoking have long called for stricter controls. In 2005, China ratified the World Health Organization Framework Convention on Tobacco Control, but it failed to carry out many of the measures by a 2011 deadline. A World Health Organization report last year put China behind many developing countries in terms of tobacco control, including Egypt, Thailand and Vietnam.

The proposed regulations, presented this week for public consultation, suggest what tighter controls might look like.

In addition to the ban on smoking indoors in public places, such as offices and schools, smoking would be banned in outdoor areas where people gather, such as bus stops and sports venues. The proposed regulations would require outdoor spaces such as parks to provide separate smoking areas. Managers of these sites would have the right to call the police to deal with people who do not follow the rules and “cause trouble,” according to the draft regulations.

Restrictions on tobacco advertising would be more strictly enforced, meaning schools that now feature pro-tobacco slogans would have to remove them. Half the surface area of cigarette packages would be required to provide information on the dangers of smoking.

The proposed regulations include strict controls on selling tobacco to minors. Those who cannot show identification proving their age would not be allowed to buy tobacco.

The proposals, announced on the website of the Legislative Affairs Office of the State Council, have already attracted thousands of comments on Chinese websites, many positive. The antismoking lobby has voiced its support as well. And according to a report in The Beijing News, 90 percent of Beijing residents favor a total ban on smoking in indoor public spaces.

But if the proposals become law, they will challenge all kinds of entrenched behaviors.

As The Shanghai Legal News asked this year: If smoking is banned in offices, what happens when the boss smokes? Will anyone dare say, “Put it out”?

Its headline read: “Will the Leaders ‘Lead’ in Banning Smoking in Offices?”