Fixed operator strategies (2) - 5 June 2005

Bouygues Telecom (France) could search partners to enter the fixed line market with high speed internet and VOIP. It bid for Tiscali France few months ago and in the end of 90s was a shareholder in World Online France. Fixed-Mobile convergence is the main driver to the move.

Club Internet (France), a DT company, plans to deploy its own infrastructure in order not to depend on competitors. By the end of the year, the network should cover 50% of French population. It would offer ADSL-based triple play services.

France Telecom and Free (both in France) are jointly working to improve high-speed internet access in France. FT will deploy infrastructure (about 1500 NRA HD) in rural zones in two years, while Free will offer triple play services.

C&W will enter China fixed-line market via a 17m- joint venture with a subsidiary of CITIC. The JV will play the role of virtual operator, over a leased telecom network.

US: big telecom incumbents (Verizon, SBC) failed to gain a statewide TV franchise in Texas, after Virginia, and will have to negotiate franchises with every individual city and town. This a big setback for them, and this will slow down their rollout of video service. Needless to say they are upset.