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Iliad Expects Roaming Deal with Orange to Cost Over $1.3 Billion
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French mobile network, Iliad expects that its national roaming agreement with Orange will cost it over EUR1 billion (US$1.3 billion).
The company secured the country's fourth mobile license, and was permitted to launch once it had deployed its own network infrastructure to at least 27% of the population - filling the rest with a national roaming agreement.
"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.
There was controversy earlier this year when it was claimed that the company had shut-down part of its network and was routing more traffic over Orange's network. An investigation by the regulator, Arcep later vindicated Iliad of the allegations.
As stipulated in the terms of its licence, Iliad, which trades as Free Mobile is now required to be providing 75% of the population with 3G coverage by January 2015 and 90% by January 2018.
On the web: Wall Street Journal
Tags: [iliad] [orange] [free mobile] [France]
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