Vivendi calls for FT network spin-off, report says

20 Mar 2009

Vivendi chief executive Jean-Bernard Levy says France Telecom (FT) should be forced to spin off its fixed line network because of its ‘unhealthy dominance of the French market’, the Financial Times writes. In an interview with the paper, Levy argued the former monopoly should be compelled to cut certain wholesale prices paid by alternative operators to help redress the problem in the short term. More significantly, the Vivendi man said that the regulator should force a ‘total separation’ between FT and its PSTN, because as it stands the local market is functioning abnormally. ‘If we look ten years down the road, I think that’s where we ought to be going,’ he said. The company has filed a complaint to the EU, accusing FT of abusing its dominant position in the market. ‘There are no rules for fair competition, so this is why we are taking it to Brussels,’ he added.

France, Orange Group