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.
KPN to decide between retention and sale of French unit (Europe)
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.
ARCEP receives bids from four operators for 4G spectrum (France)
French telecom regulator, Arcep, has received bids from four of the mobile operators in France for the fourth-generation (4G) mobile spectrum being auctioned by the country.
As per reports, regulatory authority ARCEP said that bids have been submitted by France Telecom, Vivendi’s SFR, Bouygues Telecom and Iliad in order to acquire some of the 4G spectrum being auctioned from the 2.6 gigahertz spectrum band. However, details regarding the share of the spectrum or the price required to be paid were not clarified. Further, ARCEP said that the outcome of the auction for the lower-quality band will probably be announced before mid-October 2011. Bids for the higher-quality 800 megahertz band, which will be sold for a greater price, are due by December 15, with licenses expected to be awarded in 2015.
France expects to raise at least $ 3.4 billion from the 4G spectrum auction. Operators seek to acquire 4G rights as it enables them to offer their subscribers faster download speeds and a better internet experience.
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.
$1.7bn credit line secured by Iliad (France)
www.WirelessFederation.com/news: EUR1.4 billion (USD1.7 billion) five-year credit facilities has been secured by French broadband internet provider and would-be mobile start-up Iliad (Free) from a group of eight European banks to help refinance its debt ahead of its launch of mobile services in the country.
Credit line illustrates the company enjoys a healthy position as one a European operators with a very low level of debt.
The agreement will not only will enable existing cash flow but will enable Iliad to fund its medium-term growth strategy
Arcep receives three bids for 3G spectrum (France)
www.WirelessFederation.com/news: Three bids one each from France Telecom (FT), Vivendi’s SFR and Iliad (Free) has been received by the French telecom regulator Arcep. The bid has been invited for the final two allocations of ultra-high speed wireless frequencies.
The winner of the spectrum will be chosen by the regulator by end- may. The spectrum comprises 2 x 5MHz of spectrum for 3G wireless services.
EUR120 million (USD152 million) has been reserved by Arcep on each block of frequency. No further information has been provided for the actual bids being tabled and till now three firms have been divulged. However, Bouygues Telecom has not submitted a bid for the frequencies.
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.
