Free MobileMobile subscribers in France now have a fourth operator to choose from as Iliad’s Free Mobile launched its voice and data services in the country this week. As per reports, Free Mobile will offer users unlimited calls, SMS and MMS along with free internet access up to 3 GB for US$ 25.5 per month.

The operator has launched these highly competitive price plans in a bid to compete with its rivals and invite more subscribers. Xavier Niel, Chief Strategy Officer, Iliad has reportedly said that they aim to provide users with complete access to the internet including peer-to-peer access and VoIP (Voice over Internet Protocol) among others.

Further, according to sources Free Mobile has signed an agreement with U.S. handset maker Apple and will offer customers Apple handsets with multiple payback schemes.

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Mobile operator France Telecom will be selling its Swiss unit, Orange Switzerland, to private equity investment group, Apax Partners for an enterprise value of approximately USD 2.1 billion. According to company reports, the transaction will be sent to the Board of Directors of France Telecom for approval during the week commencing on January 9, 2012.

As reported earlier, the operator had decided to sell of its Swiss mobile subsidiary in an attempt to achieve sustained growth in a struggling industry and focus its attention on the emerging markets. The company reportedly claims that upon completion, this transaction will constitute a significant step in the optimization of France Telecom’s assets portfolio announced in May 2011.

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Mobile operators Bouygues Telecom, Orange France and SFR were successful in winning 4G mobile licences in the 800 MHz band. According to reports, the Government of France was able to raise US$ 3.45 billion through this second round of auction.

The country’s telecommunications regulatory authority, ARCEP, is hopeful that these licences will help improve the competition in the wireless industry. Sources claim that both Orange and Bouyges Telecom were awarded one frequency block each for US$ 1.16 billion and 890.3 million respectively. SFR was the only operator successful in acquiring two frequency blocks for US$ 1.4 billion.

Telecom operator Free Mobile was unable to acquire a licence, but reports reveal that the operator will be able to offer services on SFR’s network under certain conditions.

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France Telecom, a leading telecommunications service provider, is expected to receive the second round bids for its Swiss unit, Orange Switzerland, from five potential buyers. According to reports, some of the shortlisted investors include Providence Equity Partners, Apax Partners and EQT Partners. Sources claim that Naguib Sawiris, founder of Orascom Telecom may also bid for Orange Switzerland along with cable company Liberty Global Inc.

As reported by Wireless Federation earlier, the sale of Orange Switzerland was a strategic decision taken by France Telecom in an attempt to achieve sustained growth in a struggling industry and focus its attention on the emerging markets.As per sources, France Telecom hopes to receive between US$ 1.95 billion and US$ 2.60 from the sale.

The sale being advised by Perella Weinber Partners along with Lazard Ltd. is expected to be finalized in the beginning of 2012, wherein France Telecom will reportedly announce the company chosen to acquire its unit.

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Leading Dutch telecommunications and ICT service provider, Royal KPN is expected to take a decision regarding its French business in the next six months. According to reports, amidst increasing competition in the French wireless market, the company will decide if it would sell its business in France or work towards strengthening its presence in the market.

KPN currently operates as a mobile virtual network operator (MVNO) under the brand ‘Simyo’ via the networks of Orange and Bouygues Telecom. Further, sources claim that competition is expected to intensify even more with the addition of mobile operator Iliad SA to the wireless market which currently includes Orange, SFR and Bouygues Telecom.

 

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Mobile operator Orange France has reportedly upgraded its mobile network enabling speeds up to 42 Mbps in nine cities. According to reports, the operator claims that its coverage area includes the regions of Paris, Grenoble, Lens, Lille, Lyon, Marseile, Nantes, Nice and Toulon. Further, sources claim that the operator hopes to increase its population coverage from 50 percent to 60 percent by providing Bordeaux, Toulouse and Strasbourg with the upgraded network by 2013.

As per reports, the operator’s Business Everywhere Premier subscribers would automatically be upgraded to the faster download speeds, with the upload speed being increased to 5.8 Mbps. Further, the Business Everywhere customers who currently have access to a download speed of 14.4 Mbps and an upload speed of 2 Mbps will be required to pay an additional charge of US$ 5.3 per month to gain access to the upgraded service.

 

Skype technologies, a software application that allows users to make voice and video calls and chat over the Internet, has reportedly approached Ofcom, UK’s telecom authority, as British mobile operators have blocked Internet based calls on their networks. According to reports, Ofcom has said that by blocking Skype’s services mobile operators were restricting innovation and that it may intervene if the operators continue to block the services.

Mobile operators in the US such as Verizon Wireless, have not paced any restrictions on the services offered by Skype, but have infact offered the software on some of its handsets since the past year. However, on the other hand, British operator Vodafone Group Plc requires users to pay an additional charge of $ 23 each month to gain access to Web-based calls on their mobile phone. Further, reports suggest that France Telecom and Deutsche Telekom in UK have banned access to such services.

Sources claim that operators impose such restriction in an attempt to safeguard their profits as well as counter the fall in revenues from traditional voice and message services.

 

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UK’s mobile operator, Everything Everywhere has reportedly announced new bank financing facilities worth $ 1.35 billion, in the next step towards becoming an independent entity. According to reports, the operator will use the facilities to refinance a part of the loan received by parent companies France Telecom and Deutsche Telekom worth $ 1.93 billion.

As per sources, Neal Milsom, CFO, Everything Everywhere, has said that they are pleased to receive the support of the high quality lenders who are participating in their new bank financing facilities. The participating banks include Bank of Tokyo-Mitsubishi, Barclays Capital, HSBC, J.P. Morgan, Lloyds Bank, Morgan Stanley and Royal Bank of Scotland.

Reports suggest that Everything Everywhere claims that the there will be no change in its ownership structure after the refinancing, and that it will continue to be a  50:50 joint venture between France Telecom and Deutsche Telekom.

 

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Leading telecommunications operator Orange France has reportedly launched the first mobile banking service in the country in collaboration with BNP Paribus. According to reports, the service enables users to manage their accounts as well as make payments through a number of applications using their mobile phones. As per sources the smartphones offer with the service include the Acer Liquid Express, BlackBerry Curve 9360 and Samsung Galaxy Cityzi phones, among others.

Reports reveal that Francois Villeroy de Galhau, head of retail banking, BNP Paribas had said at the time of the agreement that through this partnership they would create a new way of managing bank transactions. Further, Orange’s expertise will enable them to offer all their customers mobile banking making BNP Paribas the first mobile bank in France.

 

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Polish competition authority UOKIK (The Office of Competition and Consumer Protection) has imposed fines on four of its mobile operators for their conduct in the mobile TV market. According to reports, UOKIK has asked all members of the cartel to stop their practices and have been fined a total of US$ 34 million. The Polish watchdog has reportedly accused the operators of obstructing the development of the mobile TV market.

As per sources, the fines imposed on the operators were in accordance with their market share. France Telecom’s unit was asked to pay the highest at US$ 10.5 million, followed by T-Mobile at US$ 10.2 million, PolkomTel at US$ 10 million and Play at US$ 3.2 million.

 

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