Free Mobile founder defends low-cost model

Xavier Niel, the French telecoms billionaire, said he had invested €950 million in France last year and created a thousand jobs as he sought to counter criticism that his launch of an ultra-low cost mobile phone operator had seriously damaged the country’s industry. Niel has come under attack from French ministers and rivals such as Vivendi’s SFR and Bouygues Telecom after he was allowed to launch a fourth mobile operator, Free Mobile, by the previous center-right government – even though he only had limited network coverage. His listed holding company, Iliad, said that it had invested 30 percent of its 2012 revenues as it increased its network coverage in France to 40 percent as defined by Arcep, the country’s telecoms regulator.