France Telecom approaches rivals over 3G network sharing

According to Reuters, France Telecom is holding talks with rival mobile operators over the possibility of sharing its 3G network in order to cut costs. ‘There are discussions but no particular timing [for decisions],’ CEO Stephane Richard told Reuters on the sidelines of France’s Medef employers annual meeting. The executive confirmed that France Telecom has held discussions with SFR, Bouygues Telecom and newcomer Iliad. The January launch of Iliad’s mobile service sparked a price war which has led to the three existing players becoming structurally less profitable. ‘I think it is in the interest of all operators to examine opportunities for network sharing given the new realities in the mobile market, and also to rationalise our investments, while keeping our capacity to differentiate ourselves via network quality,’ Richard added.