Monday, May 6, 2013

Lunch with the FT: Xavier Niel - By Simon Kuper

The telecoms billionaire is called France’s Steve Jobs by some and a ‘peep-show man’ by others. In Paris, he talks to Simon Kuper about blocking Google’s ads and battling Sarkozy

Some in France thought Minitel was the future; Niel was shrewder. In 1993, he founded WorldNet, France’s first internet service provider. Nine years later, his company Iliad launched the “Freebox”, an ingenious set-top box that brought internet, TV and telephone into your home. A monthly package cost just €29.99, undercutting competitors. There was a hiccup in 2004 when Niel was briefly jailed after a four-year judicial investigation into one of his businesses; he received a two-year suspended sentence and a €250,000 fine for embezzling about €200,000 from some sex shops he co-owned. (“I did stupid things, I paid for them,” he has said.)

Recently, Niel has graduated from irritating the French elite to irritating the global elite. For several days in January, Free changed its default settings to block online ads. The move was aimed chiefly at YouTube, which Niel says refuses to pay for the online traffic it generates. Fleur Pellerin, French minister for the digital economy, ordered Free to remove the block. When I mention this, Niel retorts: “You think we went to sleep when the minister told us to stop?” What will he do then? “We’ll continue. We’ll cut the ads from time to time, and one day we’ll cut them for good.”