(Les Echos) Telecom: "The time is not consolidation but investment"

Telecom: "The time is not consolidation but investment"

Emmanuel Macron gathered Thursday night in Bercy Orange, SFR, Bouygues and Free: they pledged to cover the areas where the mobile does not pass within four years. In an interview with the "Echos", the minister talks about the details of the agreement, the investments to be made in the very high speed, and on developments in the telecom sector.
Emmanuel Macron (Minister of Economy)

What do you think of the offensive Patrick Drahi Altice and his group in the United States?
I am delighted that the French groups to conquer the world. Patrick Drahi is not the only one. Free has for example attempted to establish themselves in the US last year, and Orange is also developing abroad. This shows that our businesses are strong and they anticipate the future by finding new sources of growth outside France. This is true for telecom but also for other industries. Of course, this should not be to the detriment of contractors or employees in France. We remain extremely vigilant on this point.
In France, the sector has reached a point of equilibrium. Time is not the concentration between operators but to investment. The concentration is less equipment, fewer networks and fewer jobs. The sector is now run by four operators who have their place and are engaged in a general movement of modernization of their infrastructure on 4G and fiber. We must not give a pretext for freezing the projects, as is often the case when anticipating a potential consolidation.

Where are you with the commitments of the operators?
Our priority is to implement investment programs and ongoing coverage. It's good for operators, because that says investment in infrastructure means better quality services. It's good for the whole telecoms sector and the different suppliers that accompany the deployment of networks: 50% of the fiber used in Europe is produced in France. It is especially good for the country because there is no economic success without good infrastructure. I Monday launched the Future Industry project with the ambition digital transformation of our industry. Without mobile coverage or without the fiber, the upgrading of our businesses is impossible. The investment in this sector is therefore a key component of economic and industrial recovery of our country.

How do you reduce the white areas (not covered by the mobile)?
Lack of access to mobile telephony legitimately nourishes the resentment of a part of our population and some politicians who consider themselves left behind. Not doing so necessary for everyone to have access to the mobile, it is a political mistake and this is even an economic mistake. That's why we make access to mobile telephony a priority of our economic action. Following the announcements made by the Prime Minister a few months ago on this subject, so we wanted to develop a binding framework for growth and business law and I wished immediately mobilize operators by bringing together in Bercy. He then has one month yesterday.

How does it revolves?
The law provides that the 160 towns that are no mobile coverage, even 2G are fully covered end of 2016. The law also sets a timetable for 3G coverage in 3,600 cities identified in 2010. This program is made today to 40%: it is insufficient. Mid-2017, all will be made. With these two obligations, all municipalities of France will have access to mobile internet (that is to say the 3 G) in spring 2017. To be sure, I wanted Arcep has a power of sanction for non-compliance with these targets by operators. Finally, we decided to go even further, because even when the town or village center center is covered, there is still some adjacent areas where no reception is possible. This is why the law provides a window system at the initiative of local authorities which will allow us to identify 800 priority sites. The agreement signed last night in Bercy gives content to this obligation. For the first time, the 4 operators undertake to equip these sites at their own expense within 4 years.

On the very broadband, Numericable, SFR commitments will they be held despite the merger?
There is no reason to reopen the agreements which have been concluded with operators. They must be respected. This existing cable is not intended to be disassembled. But to get the expected progress, the new high speed broadband networks should be fiber optic and cable. We have fallen behind because of the merger SFR-Numericable, the intermediate zones, the operators are committed to equipping fiber. I want them to catch up faster schedule.

And the less dense areas?
It should clarify and standardize the rules to avoid any slowdown. In the Law for the growth and activity, we have provided a tariff framework for the RIP, these "public initiative networks" designed by the community with the support of the State, are not victims of dumping. We imposed that all new homes are bundles starting in 2016. Within a month, I will propose simplification of the legal and operational framework and ways to better mobilize funding for the RIP can accelerate.

What role does the Government in the call for applications for frequencies in the band 700?
We have to establish the framework within which organizes the allocation of frequencies. I will write in the coming days to ARCEP to set public policy objectives of the Government in the allocation thereof. Our priorities are first heritage: the frequencies belong to the French, they must be well valued. I asked the Committee on investments and transfers it to assess fair value. It will also define spatial planning obligations for operators. You take them into account from the start, when we attribute these lots. Finally, I wish to encourage infrastructure competition, in that it encourages investment.

Must book a lot to Free has fewer frequencies than others?
It is for the ARCEP, in the coming weeks, to define the precise terms of grant. Some wanted a lot being reserved. If we go on this way, so do not be it at the expense of frequencies sale price or the legal soundness of the process. What I want is that all operators have their chance and that there is none who has left the game with another. That is our responsibility when we have to assign these frequencies.

You have established a regular appointment with operators ...
There it works: site meetings with everyone around the table. This will take stock of the advance and what blocks. I made a it a month ago, a new Thursday, and I do it again in a six weeks. We will continue at the frequency you need, until the end of five years. I invite Arcep at each of these meetings, as the period in which the state and the regulator did not work hand in hand is over. Governments are not there to be in the cast or regretted. They are there to provide a framework and to control, verify and, if necessary, require. That's what we do.