French Consumer Group Hits Out at Orange, SFR Over 4G Coverage

By Ruth Bender

PARIS--A French consumer group Tuesday said it filed a complaint against Orange SA (ORA.FR) and Vivendi SA's (VIV.FR) biggest telecom unit, SFR, saying the telecom operators made deceptive commercial claims about their fourth-generation network coverage.

UFC-Que Choisir, a French group representing consumers' rights, said a study analyzing the 4G network services across Paris found there was an "abnormal gap" between the 4G coverage that the two groups claim to provide in the capital and the actual access that consumers get to their 4G networks.

The complaint comes as European telecommunications companies start to close the spending gap on so-called fourth-generation telecom networks, which help speed up such data-heavy tasks as web browsing and video streaming on smartphones and tablets, after years of lagging behind the U.S. and Asia. Many operators have pinned their hopes on new, faster data service using 4G to help them boost revenue.

UFC-Que Choisir said its study found that Orange's 4G network was available in only 79.3% of the capital while SFR was only in 75% of the city, leaving many holes in its coverage while claiming to cover the city almost entirely. Only rival Bouygues Telecom, owned by group Bouygues SA, met its promises, covering 99.4% of the city, UFC Que Choisir said.

"Considering the results of the study, l'UFC-Choisir is filing a complaint against Orange France and SFR," the consumer group said in a statement.

Orange said it was "astonished" by the legal action. "Orange reaffirms it is meeting its promises regarding its coverage and has always been transparent, regularly updating its coverage maps," the company said in a statement.

SFR said in an emailed statement that it announced at the end of August that it aimed to cover 100% of Paris by the end of the year.

Write to Ruth Bender at [e-mail]

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