France Telecom has threatened to freeze investments in its fibre rollout, after a decision of June 22nd by French telecoms regulator Arcep which has allowed alternative operators to request individual fibres to be run to each home in apartment buildings, according to reports in local newspaper Les Echos.

"Installing more fibres per unit challenges our whole business plan," said a source at France Telecom, according to the reports. "We are therefore forced to suspend our investment in new buildings."  Didier Lombard, CEO of the incumbent telco, has previously stated that economic conditions must be "reasonable" for the company to invest in fibre networks, which has been widely interpreted to mean that regulations must enable the company to make an acceptable return on its investment.

The French government has set a goal of connecting 4mn homes to very high-speed Internet networks by 2012, however this is deemed unlikely to be achieved if France Telecom follows through on its threat.