Roaming deal between France Telecom and lliad may result in $2.63 billion (Europe)
Mobile operator France Telecom’s Chief Executive Stephane Richard has said that the roaming deal with competitor Iliad could generate an amount of $2.63 billion in an interview with the Liberation newspaper.
Richard added that they had said the contract would bring $1.3 billion. However, it could be double depending on Free’s capacity to develop its network.
He said that Free quickly gained a significant market share as it offered fees as low as $2.6 a month. Free mainly sells pre-payment lines without handset, an offer that may convince as much as 15 percent of the market.
Orange responds to impact of Free Mobile’s launch (Europe)
Mobile operator Orange has reacted to the impact of Free Mobile’s launch stating that in the first 48 hours following 10 January 2012, Orange recorded a substantial increase in RIO requests, (the identity codes required to request mobile number). These peaked at over 150,000 requests in a single day during this initial period but have now decreased tenfold.
As at 15 February 2012, the Orange mobile subscriber base had declined by 201,000 subscribers, representing around 0.7 per cent of its total mobile customer base in France, which, at 31 December 2011, had reached just over 27 million subscribers.
Orange’s early commercial counter-attack enabled it to respond rapidly by adapting tariffs for its low-cost brand Sosh, launched in September for this purpose, and by adjusting the Orange Open quadruple play offer. The new tariffs for Sosh respond to the new market environment, with three commitment-free SIM only offers from US$ 1.2 (2 hours voice, unlimited SMS / MMS / WiFi) to US$ 33 (100 per cent unlimited).
As per the company statement, they helped accelerate the acquisition of new customers and had attracted a total of 90,000 Sosh subscribers as at 15 February 2012. In parallel, the Orange Open range was enriched and reached a total of 1.4 million subscribers as at 15 February 2012. Finally, the Origami range also contributed a significant share of new additions over the period.
Lastly, ever pragmatic, Orange signed a 2G and 3G roaming contract with Free mobile last March. This contract will generate additional revenue for the Group linked to the volume of traffic that, at the time of signing, was estimated to represent US$ 1.3 billion over a six-year period. The traffic generated by Free mobile subscribers could be substantially higher than expected without this having a negative impact on the quality of service for Orange customers.
Free Mobile causes rival operators to rethink price plans (France)
Free Mobile, a unit of telecom provider Iliad, has sent the French mobile market in frenzy owing to its reduced tariff plans. According to reports, subscribers have been actively availing the Mobile Number Portability (MNP) service in a bid to switch to Free Mobile, after paying high prices for mobile services.
Earlier in the year, Xavier Niel, founder, Free Mobile had warned rivals that he will reduce subscriber’s mobile bills by 50 per cent, by launching an aggressive pricing strategy that would liberate consumers. Niel said that up until now subscribers have been cash cows. He added that consumers can either call their current operator and ask for the same price or switch to Free Mobile.
As per sources, Free Mobile is offering its subscribers a US$ 26.50 price plan which includes unlimited calls, text messaging, free international calls to 40 countries across Europe and North America along with mobile data up to 3GB. The only price plan remotely competitive to Free Mobile’s plan is ‘Sosh’ by Orange which offers the subscribers similar features for a price of US$ 66.
The number for MNP requests to switch to Free Mobile has been overwhelming, causing rival operators, Orange France, SFR and Bouygues Telecom, to rethink their strategies so as to maintain their market share. Sources claim that mobile operators are looking to introduce discounted tariff plans in order to counter Free Mobile’s prices.
Reports reveal that the carrier added over 1 million subscribers in the month of January alone, with over 50 per cent of the subscribers coming in from rival carriers.
Speculations have been raised regarding Free Mobile’s ability to sustain its business in the French market by industry analysts over a long period of time. However, consumers have been rejoicing at availing mobile services at such a discounted rate.
Free Mobile launches mobile services (France)
Mobile 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.
France raises US$ 3.45 billion in 4G mobile licence auction (Europe)
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.
Free Mobile selects Forsk’s Atoll software for 3G network (France)
Free Mobile has selected RF planning and optimization software provider Forsk’s Atoll software for the design of its mobile network.
Free Mobile is a new incoming mobile operator in France and is designing its 3G network planned to be on-air early in 2012. Forsk has delivered licences of Atoll and Atoll ACP (Automatic Cell Planning) for UMTS, together with implementation and mentoring services.
France Telecom signs mobile network deal with Iliad
Iliad has stated that France Telecom has agreed to let rival Iliad’s Free mobile operator associate on its French 3G and 2G networks until it has had time to establish its own.
According to Iliad, this agreement will take effect once Free Mobile has deployed a network that offers coverage for 25% of the French population.
Free bought France’s fourth 3G licence in December 2009 for US$332.80 million and is planning to launch its service next year.
Free’s entry in French market gets complicated
www.WirelessFederation.com/news: The unwillingness of the French incumbents Orange France, SFR and Bouygues Telecom to discuss 3G network sharing arrangements has posed a threat to the wireless market entry of Iliad’s Free Mobile in the country.
The operator has planned to enter the market in 2012 but the prospects look set to be ‘seriously complicated’ the paper writes. The big three cellcos have thus far declined any offers to negotiate the use of their 3G networks and are currently only discussing 2G roaming agreements and this is the major reason behind the problem.
While Orange and Bouygues have apparently refused to enter into negotiations on the matter, SFR only wants to discuss a roaming offer to its subscribers for 2G, as the law requires. As per the local media, Arcep may be forced to step in to resolve the situation or that, failing that, Iliad could go before the Competition Authority or the Council of State to seek a sensible resolution.
3G network-sharing agreement signed by French mobile operators
www.WirelessFederation.com/news: An agreement has been signed between three established mobile phone operators of France to share third-generation mobile network installations in order to extend 3G network coverage across the country.
Principles on how to share 3G mobile network deployments has been laid down in the framework agreement signed by France Telecom’s Orange, Vivendi SA’s SFR and Bouygues’ Bouygues Telecom on February 11.
According to French telecoms regulator Arcep, the agreement will help speed up the extension of the 3G network in France and will enable full nationwide coverage by the end of 2013. Terms for the inclusion of Iliad’s Free Mobile in the agreement will also be discussed by the three operators before May 31, 2010.
Telenor reaches 100 million mobile subscribers
Telenor has signed up its 100 millionth mobile subscriber. The milestone was achieved at its Hungarian operator Pannon, where the customer was given free mobile usage for a year and trip to
Norway
. The Norwegian company offers mobile services in 13 countries and earlier predicted passing the 100-million subscriber mark this year. It last reported 96 million subscribers at the end of June. The subscriber figures are based on 100 percent of consolidated and associated operators. On a consolidated basis, accounting for less than 100 percent ownership of some associates, the company has 56.5 million subscribers at the start of September.
Source- http://www.telecompaper.com
