12-Jan-2012 - Iliad Takes Aim at Top Mobile Operators in France

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PARIS — After popularizing the idea of low-cost broadband Internet in France, upsetting a few vested interests in the process, the telecommunications entrepreneur Xavier Niel wants to do something similar for mobile phones. Mr. Niel’s company, Iliad, which operates under the brand name Free, on Tuesday introduced a wireless service that challenges the three main mobile operators in France aggressively on price. Modeled after Free’s broadband package, which offers Internet access, fixed-line telephone calls and television for a flat monthly rate of €29.99, or about 38, the new mobile service is built around a €19.99 plan that includes unlimited domestic and international calls, text messages and mobile data. Analysts said the price was considerably lower than for packages offered by existing operators in France, football jerseys which has some of the most expensive mobile rates in Europe. While like-for-like comparisons are difficult because of the complexity of calling plans, mobile users in France spent an average of €392 last year, compared with €181 in Germany and €167 in Portugal, according to the research firm Gartner. Free contended that its new offer was less than half the price of comparable packages from the three existing operators: Orange, part of France Télécom; SFR, owned by Vivendi; and Bouygues. Analysts said these companies might have to cut their rates sharply or risk losing customers to Free. “This is going to put a lot of pressure on the existing operators,” said Jessica Ekholm, an analyst at Gartner. “All of them are going to feel the pinch.” Mr. Niel, whose early days in business were spent operating racy sites for the Minitel, the French precursor to the Internet, has long delighted in tweaking the country’s business establishment, including Orange, whose parent is partly owned by the French state. Two years ago he joined two other wealthy executives to buy the newspaper Le Monde, over the objections of President Nicolas Sarkozy. In acquiring a license from the government that allowed Free to become the fourth main mobile operator in France, Mr. Niel had to overcome vigorous lobbying from France Télécom and the other operators, who were worried about his reputation for cutting prices. Mr. Niel signaled Tuesday that he would not depart from the brash, aggressive, price-based marketing formula — an NFL shop jerseys exception in France — that has attracted nearly five million customers to Free’s broadband offering in little more than a decade. “You now have the chance to teach your operator a lesson,” he said during a news conference in Paris. “You have two choices: You can sign up with Free or you can call your operator and ask them to match our rates.” At least one operator, Orange, was sending text messages to subscribers on Tuesday, reassuring them that it was checking to make sure they had the appropriate calling plan for their usage. Analysts said that in the short run, migration to Free could be limited by the fact that many customers are on ironclad long-term contracts with another mobile operator. Free, by contrast, is not requiring a minimum subscription period. At the low end, Free is also offering a mobile package with a limited number of calls and text messages for €2 a month. Marketing and customer service could also be challenging for Free, analysts said. While Orange, SFR and Bouygues have networks of shops across France, Free plans to operate only a handful of stores, relying mostly on the Internet for sales. Free also has not yet built a network covering all of France; to offer nationwide service, it has contracted with NBA jerseys Orange to use its network in many regions. Frank Cadoret, an executive vice president at SFR, told Reuters that SFR intended to cut prices on calling plans sold via the Internet following the arrival of Free.

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12-Jan-2012 - Iliad Takes Aim at Top Mobile Operators in France

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PARIS — After popularizing the idea of low-cost broadband Internet in France, upsetting a few vested interests in the process, the telecommunications entrepreneur Xavier Niel wants to do something similar for mobile phones. Mr. Niel’s company, Iliad, which operates under the brand name Free, on Tuesday NFL shop jerseys introduced a wireless service that challenges the three main mobile operators in France aggressively on price. Modeled after Free’s broadband package, which offers Internet access, fixed-line telephone calls and television for a flat monthly rate of €29.99, or about 38, the new mobile service is built around a €19.99 plan that includes unlimited domestic and international calls, text messages and mobile data. Analysts said the price was considerably lower than for packages offered by existing operators in France, which has some of the most expensive mobile rates in Europe. While like-for-like comparisons are difficult because of the complexity of calling plans, mobile users in France spent an average of €392 last year, compared with €181 in Germany and €167 in Portugal, according to the research firm Gartner. Free contended that its new offer was less than half the price of comparable packages from the three existing operators: Orange, part of France Télécom; SFR, owned by Vivendi; and Bouygues. Analysts said these companies might have to cut their rates sharply or risk losing customers to Free. “This is going to put a lot of pressure on the existing operators,” said Jessica Ekholm, an analyst at Gartner. “All of them are going to feel the pinch.” Mr. Niel, whose early days in business were spent operating racy sites for the Minitel, the French precursor to the Internet, has long delighted in tweaking the country’s business establishment, including Orange, whose parent is partly owned by the French state. Two years ago he joined two other wealthy executives to buy the newspaper Le Monde, over the objections of President Nicolas Sarkozy. In acquiring a license from the government that allowed custom nhl jerseys Free to become the fourth main mobile operator in France, Mr. Niel had to overcome vigorous lobbying from France Télécom and the other operators, who were worried about his reputation for cutting prices. Mr. Niel signaled Tuesday that he would not depart from the brash, aggressive, price-based marketing formula — an exception in France — that has attracted nearly five million customers to Free’s broadband offering in little more than a decade. “You now have the chance to teach your operator a lesson,” he said during a news conference in Paris. “You have two choices: You can sign up with Free or you can call your operator and ask them to match our rates.” At least one operator, Orange, was sending text messages to subscribers on Tuesday, reassuring them that it was checking to make sure they had the appropriate calling plan for their usage. Analysts said that in the short run, migration to Free could be limited by the fact that many customers are on ironclad long-term contracts with another mobile operator. Free, by contrast, is not requiring a minimum subscription period. At the low end, Free is also offering a mobile package with a limited number of calls and text messages for €2 a month. Marketing and customer service could also be NFL jerseys cheap challenging for Free, analysts said. While Orange, SFR and Bouygues have networks of shops across France, Free plans to operate only a handful of stores, relying mostly on the Internet for sales. Free also has not yet built a network covering all of France; to offer nationwide service, it has contracted with Orange to use its network in many regions. Frank Cadoret, an executive vice president at SFR, told Reuters that SFR intended to cut prices on calling plans sold via the Internet following the arrival of Free.

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