Xavier Niel, founder of Iliad, shakes up French telecom market
The Economist has a fascinating article about Xavier Niel, founder of Iliad, a French telecom operator that is about to do for the French cellular market what it did for the broadband market. Iliad has announced its intention to bid for the fourth 3G license in France and to instigate a price war with the big 3 operators: France Telecom, SFR and Bouygues.
In the past few years, French consumers have seen the price of broadband service drop dramatically, thanks to Iliad’s low-priced broadband packages which forced the other operators to compete with similar prices. The operators are now terrified that Niel will do the same for mobile phone service, which Niel says is dominated by the three operators who don’t care to compete too heavily with one another. The operators have threatened to block the 3G auction on grounds that the government is charging much less for the 4th license than it did for the other three.
What makes Niel such an interesting character and so determined is that he does not come from a well-connected family and he did not go to university. He is the ultimate outsider and fearless in challenging the French establishment.
Article: Iliad’s Warrior
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