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Fibre: Competition is coming to the big cities

A little over a year ago, Axione and the Mirova Fund created CityFast. The company had bought the 140,000 fibre optic lines deployed by Bouygues Telecom in major cities. CityFast then made a commitment to connect 3.4 million urban households by the end of 2021 and to lease this infrastructure to Martin Bouygues' operator and others.

 

One year later, CityFast assures to have crossed the 800,000 fiber optic lines deployed. The wholesaler will therefore move on to the next phase: the marketing of these pipes to interested operators. The multitude of regional or specialized operators supplying VSE-SMEs will then be able to offer fibre optic subscriptions in city centres at very competitive rates.

 

The president of CityFast, Eric Jammaron, explains "Today, it is a very closed market. A downtown law firm, for example, has a very limited choice. Either it takes an FTTH subscription from one of the major operators present in the building, without guarantees, or it goes through a corporate operator to have a dedicated fibre with a very superior quality of service, but a very expensive subscription".

 

The wholesaler is convinced that small and medium operators will be in a hurry to offer fibre, with or without a guaranteed recovery time, to VSE-SMEs.

"We are betting on the mass, with extremely aggressive prices," says Eric Jammaron. Today, an ADSL pro offer, with much lower speeds, sells for 60 to 80 euros. Pro fibre doesn't go below 300 euros. "CityFast will sell its FTTH lines with service guarantees three times cheaper to operators.

An argument that is not entirely convincing. Nicolas Aubé, head of Celeste, is convinced that companies will remain fond of lines just for themselves.

 

CityFast will quickly know what to expect. As of this week, it opens to rent its fiber lines in the 7th district of Paris, then in the other districts of the capital, as well as in Lyon and Marseille.

 

 

 

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Source : Les Echos

 

 

 

 

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