The incumbent operator has submitted a Priority Question of Constitutionality to the Council of State, which can thus deprive the telecom police of its sanctioning powers and render the operators' commitments ineffective.

Unveiled on Tuesday by Le Monde, this request challenges the legal validity of a formal notice sent to it by Arcep last January. Indeed, the regulator criticized Orange for not respecting its obligations towards other telecom operators when it makes its fixed networks available to them. For the time being, this request is only at the preliminary stage. It will only be examined by the "Wise Men" of the Constitutional Council if the Council of State decides to transfer the file to it.

But in reality, it is a much broader problem. The incumbent operator argues that Arcep is both judge and party at the same time and that there is too much permeability between its three missions: to enact rules for the market, to control telecom operators and also to sanction them in the event of non-compliance with their obligations.
The regulator would de facto be deprived of its power to impose sanctions if the Conseil d'État were to rule in favour of the operator. In short, if the Arcep can no longer sanction abuses, the shipyards will fall behind and the objectives to boost French access to very high speed will not be met.

Orange assures that the procedure is a legal issue and will not affect the commitments made. The operator points out that in 2013 the Arcep has already been deprived of its power to impose sanctions in a similar procedure.
 

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Source : Les Echos

The Cloudwatt, Orange's online data hosting service, will be disconnected on February 1st. Launched in 2012, it was one of the two heads of the French-style sovereign cloud co-financed at a loss by public money. With Bercy calling again for the creation of secure data centers to host sensitive government and corporate data, this failure could serve as a lesson.

At the origin of this project, called Andromeda, France wanted to invest 150 million euros in a shared server service that could reduce the costs of ministries and companies. But here we are, the French technology groups called upon to help did not succeed in reaching an agreement and therefore shared the envelope.

On the one hand, Cloudwatt was created by Orange and Thales by adding 150 million euros to the amount provided by the State. On the other hand, Numergy was launched by SFR and Bull with the same investment. However, none of them were able to find customers. And two years after their launch, Cloudwatt claimed only 2 million dollars in revenue. Even if Numergy was doing better with 6 million billed, these are crumbs compared to Amazon, Microsoft and IBM.

Bercy stops the expenses, a few months later, by assuring that she has spent only half of the promised sums. Orange and SFR then bought back the shares of the State, one from Thales and the other from Bull. Numergy and Cloudwatt, which had then become simple brands, had since been part of the offers designed for large companies by the two telecoms operators.

Today, the dominance of American players in the online IT market continues to raise concerns about the integrity of critical data. A recent report by MP Raphaël Gauvain criticizes the Cloud Act, an American extraterritorial law recalling the Patriot Act and spy programs.

The Government should therefore sign a strategic supply chain contract to develop a "Cloud of Trust" ecosystem in the fall. Being French will not be enough to be French and some American or Chinese technologies used in French data centers will be difficult to support.

"This time, we will not assume the nationality of the actors but their ability to guarantee data integrity with regard to our laws and strategic autonomy over our essential infrastructures and data," notes Jean-Noël de Galzain, Hexatrust's president on the sector's strategic committee. In addition, the State should commit itself to playing its role as a buyer.

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Source : Les Echos

After Altice at the end of November, it is Cube Infrastructure's turn to put its shares up for sale according to several sources. Covage's 50% shareholder paid 66 million euros in 2012 to buy back its shares from Vinci. However, Morgan Stanley Bank was mandated to find a buyer on the basis of a valuation of €1 billion.

The group's EBITDA would now reach €35 million for a turnover of around €100 million. "These ratios are not relevant. We are talking about an activity in full explosion with a very low maturity. In reality, the main driver is rarity," points out a good connoisseur of the file.
Charged by several departments with deploying optical fibre, Covage has already connected 630,000 of the planned 2.2 million households. The company still hopes to win a few more contracts to reach 3 million catches, which would represent just under 10% of French households.
When all the cables are pulled, Covage will be one of the few players to have such a digital infrastructure in a significant portion of the country. Indeed, once this task is completed, operators will have to pay a fee to use their networks.

€1.8 billion to acquire half of the optical lines that SFR must deploy outside major cities. But this deal is criticized in the industry because many believe that the infrastructure has been oversold. Indeed, the line rental prices highlighted could not be applied.

On paper, there are many candidates for the acquisition of Covage: investment funds, other RIP players, in particular Altitude or major operators...

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Source : Les Echos.fr