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Iliad gets further mobile setback

  • April 22nd, 2008
  • 1:48 pm

French Internet provider’s still eyes mobile market entry; government undecided on possible fourth operator.
Iliad subsidiary Free has had another set-back in trying to get hold of mobile network space in France, following the government’s decision last year not to award it a mobile licence.  

According to Dow Jones, Maxime Lombardini, CEO of Iliad, told a French newspaper that the operator was interested in renting network space from the three other French mobile service providers Orange, SFR and Bouygues Telecom. But all three declined to strike an agreement.

Free wanted to use the operators’ networks at a fee that would be just above cost price as a short-term solution, reports say.

The company is currently waiting on the French government to make a decision on available spectrum in France.

Free applied for the fourth mobile telecommunications licence during last year, but the application was turned down as the French regulator Arcep felt Iliad would not be able to meet the financial criteria.

If Iliad wants to build a network large enough to cover 90% of the French population, it would have to fork out about EUR1.2 billion. Its net profit for 2007 was EUR150.2 million.

At the beginning of April, the French government said it is considering not allocating a fourth licence at all. Apart from Free’s financial situation, the government is also concerned that there is not really space for another operator, Dow Jones reported at the beginning of this month.

Commentators think that the government might decide to sell the available spectrum off in blocks.

In such a case, Iliad would be able to get hold of some parts of the spectrum.

In the meanwhile, CNN reports that Free and another alternative operator Neuf Cegetel will be testing interoperability of their fibre optic systems. This will bring them one step closer to sharing network space within buildings, Neuf Cegetel’s general manager Michel Paulin said.

   

Iliad Q3 sales up 29.4 percent, driven by Free broadband (France)

  • October 29th, 2007
  • 2:53 pm

French telecommunications group Iliad reported a turnover up 29.4 percent to EUR 307 million in the third quarter, compared with EUR 237.2 million in the year-earlier period. Iliad added 141,000 net customers in the quarter, with ISP subsidiary Free reaching 2.77 million ADSL subscribers at the end of September, up from 2.63 million three months earlier. Consolidated broadband turnover, including intersector revenues, rose by 35.9 percent to EUR 299.2 million, while consolidated traditional telephony sales were down by 54.7 percent to EUR 7.7 million.

Broadband ARPU increased to EUR 35.3 per month, from EUR 35 euros in the second quarter 2007 and EUR 33.5 in the third quarter of 2006. The traditional telephony business continued to suffer from the success of VoIP. The total number of Onetel subscribers fell to 180,000 subscribers as of 30 September, versus 194,000 on 30 June. ARPU has stayed at around EUR 10 since the fourth quarter of last year. Furthermore, Kedra’s revenues decreased by 81% between the third quarter of 2006 and the third quarter of 2007, due to the large increase in direct interconnection with mobile operators.

Iliad reiterated its key targets for 2007: to reach more than 2.8 million broadband subscribers by the end of the year (rising to 4 million broadband subscribers by 2010); to have an unbundling rate of 80 percent of subscribers by the end of 2007 and 85 percent of subscribers in the long term; to maintain a EUR 20 average gross margin per unbundled subscriber; to pursue the innovative and profitable growth strategy; and to have eight equipped FTTH NROs providing horizontal coverage of 241,000 homes by the end of 2007.

   

Iliad’s Q2 total sales up 30.8%, telephony revenues in ‘Free fall’

  • August 3rd, 2007
  • 2:58 pm

French telephony and broadband operator Iliad (Free) has posted revenues for the second quarter of 2007 of EUR296.2 million (USD404.9 million), up 30.8% year-on-year on a proforma basis. Broadband turnover climbed 38.8% y-o-y to EUR287.5 million whilst telephony sales fell 54.9% to EUR8.7 million. Free’s ADSL users reached 2.63 million at the end of June, up by 128,000 in the quarter, and the company said it expected to reach 2.8 million subscribers by the end of the year.

   

 

Iliad increases Q2 sales by 30.8% to EUR 296.2 million

  • August 3rd, 2007
  • 2:04 pm

French alternative operator Iliad reported EUR 296.2 million in second quarter consolidated revenues, up 30.8 percent on a proforma basis, excluding the sales of Societe SA and Kertel. Consolidated revenues from broadband rose by 38.8 percent to EUR 287.5 million and revenues from traditional telephony fell by 54.9 percent to EUR 8.7 million. Free, Iliad’s main subsidiary, added 128,000 net ADSL subscribers in the second quarter to reach 2.63 million at the end of June. The company said it achieved a 25.2 percent net adds market share in the second quarter, up from 20.8 percent in the year-earlier period. Broadband ARPU was EUR 35 per month in the second quarter. Iliad expects to exceed its 2.8 million ADSL subscriber target by the end of the year.

   

Iliad on fourth licence odyssey

  • July 31st, 2007
  • 3:31 pm

The Iliad Group, which offers broadband services in France under the banner Free, has submitted an application to the regulator Arcep for the country’s fourth 3G licence. According to AFX News, Iliad says the State Council has said that the government cannot rule on the financial terms of the concession until operational specifications are adopted. Iliad believes ‘the success of the fourth mobile operator’ is dependent on the winner being allowed to make a deferred annual payment of the licence fee instead of an up front one-off payment of EUR619 million. ‘Iliad believes that a single payment of the rental charge represents a barrier to entering the market,’ the company said. The operator is also calling for access to the 900MHz bands alongside 2.15GHz frequencies, and applauds the decision to allocate a 5MHz carrier in the 900MHz band from end-2009 to the operator chosen for the fourth licence.

   

 

 

Iliad finds buyer for phone card unit Kertel

  • January 15th, 2007
  • 10:19 am

Telecompaper writes…French telecommunications group Iliad said it has signed a memorandum of understanding to sell 100 percent of its phone card subsidiary Kertel to an unnamed company for an undisclosed amount. Iliad expects to finalise the transfer within a few weeks.