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With the wireline market saturated, Niel started eyeing more opportunities — especially in the mobile under pressure from the quad-play offerings — broadband, mobile, Vo IP and video — from three of its major rivals: France Telecom, (s fte) Vivendi’s SFR and Bouygues Telecom.It is befitting the growing stature of his company and the man himself.However, inside his offices, nothing much has changed.And while it might not have the Apple brand, you could see who had inspired the Free’s set-top box: It was even able to playback music from my i Phone using Air Play.“Since it is our own set-top box, we can innovate around it,” he says. S., they buy their set-top boxes from other providers.” That’s a mistake and lost opportunity, Niel says and proceeds to outline how pivotal these set-top boxes are for his company and its future.Even when away from home, you can easily get broadband instead of resorting to an expensive 3G network. Fr free Wi-Fi network is going to play a pivotal role in the soon-to-be-launched service, which will be using 42 Mbps HSPA technology.The company has built a network of 15,000 macrocells, but those 5 million “nano cells” are going to be the key difference maker, Niel points out.

But before I get into the details of his new company, let me back up and tell you about Iliad and 2007, while attending Le Web in Paris, I snuck out to visit Niel, the man behind Iliad, a Paris-based phone service that owned many entities including its most well-known offering:, a broadband service that offered phone (Vo IP), video (IPTV) and broadband for a simple flat monthly fee.About three dozen engineers form the brain trust of, inventing new features for the service.Five guys who built the software and a few others who hacked together the hardware are standing by the side as the boss man gives the demo. For about 45 minutes, Niel gave me a demo of his set-top box, which is everything a modern connected home needs: broadband modem, Wi-Fi router, storage center, a Blu-ray player, web-surfing device and a game machine.“Everything else — from voice to IPTV to storage – is just a feature that rides on this data service.” For the rest of the telecom industry, long addicted to metered minutes and billable items, this is rebellious thinking.Niel, who had started Free in 1999, bought a lot of dark fiber from carriers who had gone bust around the turn of the century and built an IP-only network that snaked across France.

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(I got a sneaking suspicion Free would be pushing i Phones into the market pretty heavily.) If they pull it off, it’s going to be pretty spectacular and once again, show what the telecom of tomorrow looks like.

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