French MNO Free Mobile has complied this week to an obligation of its 3G license, and has published its wholesale rates for companies which to use its network to be an MVNO. But the French MVNO association for Alternative Mobile, which represents 10 MVNOs (Afone, Auchan Telecom, Carrefour Interactive, Coriolis Télécom, Lebara, NRJ Mobile, Omea Telecom, Ortel Mobile and Transatel) has stated that the tariffs are prohibitive and will hinder competition.
Free charges its customers € 2 a month for 2 hours of calls and 60 SMS, yet it wants MVNOs to pay € 2 per month per user, even before communications are accounted for.
Free’s reference offer states that Full MVNOs would pay € 2 million as a fee to launch the wholesale service, EUR 1 million a month for wholesale access, € 2 per Sim card/active client per month, EUR 0.05 per minute for voice calls, € 0.01 per SMS and € 0.05 per MB. These prices are negotiable depending on connection conditions and volumes.
Lite MVNOs would pay € 2 per Sim card/active customer a month, € 0.05 per MB, € 0.055 per minute for voice calls until the end of June and € 0.05 thereafter, and € 0.0435 per SMS until the end of June and € 0.0335 thereafter.
In addition to tariffs, it current network coverage poses some problems. The roaming agreement between Free Mobile and Orange has no place in context, for MVNOs and who signed with Free Mobile and its unclear if they will have access. Currently Free Mobile’s coverage is only 30% of French territory.
Alternative Mobile has hinted that it will appeal directly to ARCEP and the competition authority on this matter.
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