French telecommunications company Orange SA (ORA.FR) won't sign an agreement with Iliad (ILD.FR) to share its 4G network, Le Figaro newspaper reported Tuesday, quoting Orange's chief executive Stephane Richard.

"There is no way we will sign such a deal," Mr. Richard said in an interview published by the newspaper.

Iliad has recently said it will add fourth-generation, or 4G, high-speed wireless services to its existing low-cost mobile-phone plan priced at 20 euros ($27) per month. This would provide consumers with one of the lowest prices in Europe for technology that allows faster downloads and higher-quality video streaming on mobile phones.

Since Iliad has deployed only 700 4G transmitters, not enough to cover the whole country, it would need a network-sharing agreement with other operators such as Orange, Bouygues SA (EN.FR) or Vivendi's (VIV.FR) SFR to offer an effective 4G service to its customers, at least for the first months.

Iliad's move is a potential headache for its competitors, which have invested heavily in 4G infrastructure with the view of turning around shrinking revenue, as they would have to follow Iliad's pricing to retain customers.

Bouygues recently said its low-cost offer subscribers would have access to the 4G high-speed Internet.

Orange's Mr. Richard said the users of the company's Sosh low-cost service will have access to 4G services as soon as January.

He said he expects to attract partners to Orange's online video sharing unit Dailymotion.

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

Write to Inti Landauro at inti.landauro@dowjones.com

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