Bouygues to Cut Price on Fixed Internet to Compete With Iliad - Report

French conglomerate Bouygues SA (EN.FR) will take the raging competition between operators of mobile ultrafast connections to the market of fixed Internet, Le Figaro newspaper said, citing Martin Bouygues, the company's chairman and chief executive.

Both Bouygues and its rival Orange SA (ORA.FR) were forced earlier this month to ditch plans to charge hefty fees for access to the new 4G superfast connections after low-cost operator Iliad SA (ILD.FR) announced it would offer 4G technology to existing subscribers for free.

As a response to the Iliad initiative, Mr. Bouygues said he now intends to compete with Iliad on its larger market, fixed-Internet connection. "Party is over," he said, according to Le Figaro. "We will make subscribers save 150 euros ($206) a year, or EUR12.5 a month. Who can do better? Can [Iliad's controlling shareholder] Xavier Niel do the same?," Mr. Bouygues is quoted as saying.

The 4G price war is a difficult signal for telecom operators across Europe, which have been hoping to use the new 4G service to turn around shrinking revenue, but have been at pains to do so.

Newspaper Web site: http://www.lefigaro.fr

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