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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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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France Telecom’s subsidiary Orange has reportedly entered into an agreement with telecom operator SFR in order to provide optical fibre technology across many households in the scarcely populated regions of France. According to company reports, the agreement between the two operators is expected to cover as many as 9.8 million homes.

As per sources, SFR will be required to serve 2.3 million of these households while Orange will serve the remaining 7.5 million according to the terms of the agreement.  Industry reports suggest that this investment is a part of Orange’s aim to expand fibre technology to reach as much as 60 percent of the French households by 2020, for which the operator reportedly plans to spend US$ 2.7 billion.

 

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ZTE sold 2 mn phones in 2010 (France)

ZTE reportedly sold 2 million handsets in France 2010, doubling its year-earlier volume, and is expected to sell 3 million units this year.

The company currently has a slightly over 5% share of the French mobile phone market. It sells the Link and Blade smartphones and 3G dongles through mobile operator Bouygues Telecom, while the two bigger mobile networks, Orange France and SFR, put their own brands on ZTE-manufactured devices.

ZTE is also going to launch new smartphones in May and a light 3G tablet after the summer. Orange is also testing a new customer box from ZTE. The Chinese company would like to develop its network equipment business in Europe, where its rival Huawei has succeeded in gaining a foothold.

ZTE, which does provide network equipment to France Telecom, but only for overseas territories, has two research centres in Europe. One in Paris works on value added services and one in Stockholm focuses on radio access technologies. ZTE has signed 15 LTE contracts around the world and its regional director for Western Europe, Lin Cheng, anticipates the China’s TDD technology will spread in Europe for LTE, notably because it can support more mobile traffic than FDD at the same cost.

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French MNVO Prixtel’s chairman and founder David Charles has announced that the company will be launching an ADSL service at the end of the month. With this move, it will become the first French MVNO to launch such service, although bigger rivals, such as Virgin Mobile France have announced plans.

Prixtel, which had 100,000 mobile customers in the middle of 2010 and uses the SFR network, is expected to work with the same operator for its triple-play and quad-play services. It reportedly added 12,000 of the 52,300 new MVNO customers in the third quarter of 2010. In addition to converting its mobile users to fixed-line, the operator aims to increase its overall customer base to 250,000 by the end of the year.

Pricing and other information on the ADSL service is due to be released on 30th March.

 

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French telecommunications regulator ARCEP has released the results of its 2010 audits to verify the accuracy of GSM coverage maps published by mobile network operators Orange France, SFR and Bouygues Telecom.

Field surveys have been used each year since operators began publishing coverage maps in 2007. Arcep found a 98% level of accuracy in last year’s maps and explained that 100% accuracy is very difficult to achieve, notably due to uncontrollable variations in radio propagation. Last year the figure was 96%.

The tests require an at least 95% success rate in making and maintaining a call from a fixed position with a standard handset for 1 minute.

The regulator found that although the reliability of the maps is generally good at the national level, it still needs to be improved in certain municipalities, and has reminded operators of the need to correct the published maps. Audits to be performed in by the end of October will include 286 new municipalities.

 

­French mobile network operator, SFR – a joint venture between Vodafone and Vivendi – has reported a 1.2% rise in its full-year revenues for 2010 to US$3.57 billion. Excluding the regulated price cut impacts, revenues increased by 5.8%.

Mobile revenues reached US$3 billion, a 0.2% increase compared to the first quarter of 2009. Mobile service revenues  decreased by 1.2% to US$ 2.86 billion. Excluding the impact of the 31% mobile voice termination regulated price cut made as of July 1, 2009 and of the 33% SMS voice termination regulated price cut made as of February 1, 2010, mobile service revenues increased by 4.3%.

In 2010, SFR added almost 1.29 million new postpaid net adds, in particular due to the success of smartphones and offers including an Internet remote access. 28% of SFR customers were equipped with a smartphone at the end of December 2010 (compared to 15% at end of 2009) allowing a data revenue growth of 16% in 2010. At the end of 2010, SFR’s postpaid mobile customer base reached 16.095 million, improving the customer mix by 3.0 percentage point’s year-on-year to attain 75.6%.

SFR’s total mobile customer base reached 21.303 million.

SFR’s EBITDA was US$5.46 billion, a 0.2% increase compared to 2009. This growth included US$79.79 million of non- recurring (“non-cash”) items related to the termination of some of SFR’s fixed network indefeasible right of use (IRU) by third parties.

Vodafone is widely expected to sell its 44% stake in SFR in the near future to Vivendi.

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France Telecom SA and Vivendi SA SFR have stated that they won’t raise mobile prices for  their existing customers following a tax hike in the country, changing their initial plans in an effort to retain them.

According to SFR’s statement, it has decided not to raise mobile prices for existing clients as customers complained that they were confused about the planned price hikes announced earlier this year. The company has decided to clarify things by not implementing the project to raise prices for mobile clients.

France Telecom has also announced a U-turn, stating that it has to adapt to the new conditions on the French market. France Telecom clients that signed up for a contract before Feb. 1 will, hence, keep paying the same prices.

Amidst the recent hike in value added tax, operators face a higher risk of losing  their clients as  the customers in France have the option to change their service contracts and move to another operator during the four months following a tariff change while keeping their handsets.

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France Telecom SA’s Orange unit, Bouygues Telecom, Vivendi SA’s SFR unit and Atos Origin SA have reportedly created a company to provide online payment services.

According to reports citing Buyster Chief Executive Officer Eric Gontier, the company, called Buyster, aims to compete with PayPal Inc., Google Inc. and Apple Inc. in providing payment systems in France for users of mobile phones, tablets and computers. The company will be operational from this summer.

Vodafone UK close to SFR stake sale

If sources are to be believed, U.K-based telecoms company Vodafone Group PLC is close to selling its 44% stake in French mobile phone group SFR for US$11.16 billion, with the deal potentially taking place as early as this month.

According to sources, Vodafone is finalizing negotiations with French media firm Vivendi S.A., which owns the remaining shares in SFR. Vivendi will have the ready cash from selling assets within weeks.

They added that bankers advising U.S. cable television group Comcast Corp. on its acquisition of a 20% stake of Vivendi-owned U.S. media and entertainment company NBC Universal expect the process to be completed within weeks.