- The founder of Free lost his temper during his hearing before the Senate Economic Committee, Wednesday March 22, 2023
- Attacked on its pricing policy, it reaffirmed its desire to maintain low prices for consumers, despite generalized inflation among other operators
- He also denounced the measure envisaged by Arcep which would allow Orange to increase the prices of unbundling
Update 03/28/2023 at 3:11 p.m.: following the publication of our article, the senator of Ain Patrick Chaize wished to provide some details by means of a press release. He declares :
We stage a reproach on my part to Xavier NIEL, concerning the practice of too low tariffs whereas my question was intended to know if this course was tenable in view of his introductory plea describing the operator he represents as undergoing large and multiple loads.
His surprisingly aggressive response made me look like “the bad guy” in view of his modesty and his altruism, Mr. NIEL making it clear that he defends the purchasing power of the French.
Like him, I come from an “average” family, being the son of a worker (my father made his career at Berliet, which became Renault Trucks, as a building electrician), and purchasing power is also a concern for me.
Our points of convergence will stop there because I am far from competing with his great success of which I am in no way jealous, quite the contrary.
Success must, in my opinion, be built on sound foundations and through the strength of its ingenuity and innovation.
To prove his good faith, he invites readers watch this video which broadcasts its entire exchange with Xavier Niel.
During his hearing before the Economic Affairs Committee in the Senate, Wednesday March 22, 2023. Xavier Niel did not mince his words.
Pointed out by a senator on the maintenance of low rates for Free Mobile, he got carried away when he is the only operator not to pass on inflation to consumers.
Senator Patrick Chaize asked Xavier Niel how he intended to keep his promise not to increase his prices despite generalized inflation among all operators. Xavier Niel replied that Free’s extremely low rates were one of its strengths and what he brought to the French.
He recalled that Free had been the first operator to offer an unlimited mobile plan at 19 euros per month in 2012 and that it had not changed this price since. He also pointed out that Free was the only operator not to charge its subscribers more when they switch to fiber optics. “There, I walk on the Moon!” he exclaimed before asserting that he was doing “just his job” and that he was “happy to pity” to other operators.
“There I walk on the Moon! »
Facing the Senate, Xavier Niel is surprised that he is criticized for the “too low” prices of Free, after a question from Senator Patrick Chaize. pic.twitter.com/dMgH6fPqoJ
— Raphael Grably (@GrablyR) March 23, 2023
The boss of Free reassembled against Arcep
During this same hearing, the boss of Free also attacked Arcepthe telecoms regulator, which he accuses of making a “financial transfer” to Orange by allowing it to raise unbundling prices.
Unbundling is the mechanism that allows alternative operators like Free to access the copper network of Orange, which still serves a part of French households with ADSL. In return, they must pay rent to Orange, set by Arcep.
However, at the end of February, the regulator published its project for the development of the regulation of fixed broadband and very high-speed markets for the 2024-2028 cycle, in which it plans to let Orange increase this rent under certain conditions.
This measure aims to support the progressive extinction of the copper network operated by Orange, which must disappear by 2030 in favor of the fiber optic network.
For Xavier Niel, this deadline is far too far away and this measure is a gift to Orange from Arcep. He lambasted Christel Heydemann, the managing director of Orange France, for referring to his “deal with Arcep” during a previous hearing.
Moreover, the boss of Free also pleaded for a faster extinction of the copper networkwhich must be replaced by optical fiber by 2030. He felt that the timetable presented by Orange was too long and that it did not encourage subscribers to migrate to fiber.
He also pointed out that Free was the only operator not to increase its prices when its customers switch to fiberunlike Orange which sells ADSL 10 euros cheaper than fiber.
This media release by Xavier Niel highlights the tensions between telecom operators in France and the difficulty of finding a balance between competitive prices for consumers and the profitability of operations. The founder of Free also recalled the importance of competition in the telecoms market in France and the need to maintain it to guarantee affordable prices for consumers.
