Kosc Telecom was the solution devised by the public authorities to bring more competition to the business telecoms market. Just three years after its launch, Kosc is expected to file for bankruptcy leaving a slate of 120 million euros.

After the merger with SFR, Kosc acquired part of the activities of Numericable (Completel). Bpifrance had injected 9 million euros and OVH was also a shareholder via a contribution "in industry". The idea was to make Kosc the third man in the lucrative telecom business market, 85% owned by Orange and SFR.

In 2018, Caisse des Dépôts et Consignation had in turn promised to provide 20 million euros to Kosc. It was without counting on a grain of sand: a lawsuit lost to SFR and the threat of having to pay it 20 million euros. For the Caisse, the risk was too high and decided to withdraw from the case, leading to the fall of the telecom operator.

A new game should be played at the helm of the commercial court, with potential buyers. Indeed, the telecoms sector has evolved since 2016 and Free and Bouygues Telecom have in turn launched themselves into the business market. Bouygues' subsidiary would also be a serious candidate for the takeover of Kosc, and would therefore be favoured by OVH.

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Source : Le Figaro

When SFR was acquired by Numéricable in 2014, the parent company, Altice, made a number of commitments to the French Competition Authority in order to better promote this concentration in the telecoms sector. These commitments, which were entered into for a period of five years, should no longer be maintained, the gendarme said at the end of this period, on 28 October. With one exception: the agreement to co-develop the fibre in very dense areas concluded with Bouygues before the acquisition.

The French Competition Authority has therefore released Altice from several of its commitments concerning:

• the obligation to open the cable network to other operators, and not to use the information available to Altice to deploy its fibre network.
• the prohibition on offering cable offers in La Poste branches with which SFR had a distribution agreement.
• the maintenance of dark fibre (FON) or dedicated optical local loop (BLOD) offers "at least as advantageous as before the operation".

On the other hand, the competition police officer was more picky about the Faber contract concluded between SFR and Bouygues Telecom in 2010. A co-delivery agreement for the horizontal fibre optic network in 22 cities located in very dense areas (including Paris). Especially since Altice was called to order in 2017 because of "particularly serious breaches" of the execution of this contract. 40 million fine and injunctions to comply with deployment commitments co-financed by Bouygues Telecom.

The Authority decided to lift part of the injunctions: those, without penalty, requiring Altice to connect the buildings concerned by the agreement as from the 2017 decision. The competition police officer considers that Altice's interests are now "aligned with those of Bouygues Telecom" within the scope of the Faber contract. The parent company now favours FttH.

On the other hand, the injunctions under penalty payments for the stock of buildings that were to be fibrated before 2017 are maintained. The Authority is examining the progress of Patrick Drahi's group to determine whether it should also be released from these commitments. Its conclusions will be issued "in the first half of 2020".

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Source : DegroupNews