France Telecom hits hurdle on cabler rent
Mega cabler's landlord rights kept in check
The French competition commission has blocked a move by France Telecom to raise the price it charges cablers for the use of cable infrastructure originally put in place by the telecom powerhouse.
France Telecom has tried to hike the infrastructure rent by 150%, a move that encouraged Canal Plus-owned NC Numericable to go to the competition commission in November.
NC Numericable is France's third-biggest cable operator with some 650,000 subscribers. The company lost $31 million last year on revenues of $155 million. Prior to the proposed increase in payments, NC Numericable ponied up some $25 million to France Telecom. The 150% hike would have meant NC Numericable would have had to pay $65 million this year.
The commission's decision is unusual in that it ordered France Telecom not to increase the rent until a definitive ruling on the case is made. The commission seldom steps in with temporary blocking measures.
NC Numericable's argument is that France Telecom is abusing its position in the market and the competition authorities appear to be leaning toward a view that the group is trying to restrain a cable rival.
A final ruling could take between 12 and 24 months to reach.
