RUNNING HEADER: FREEMOBILE TO CHALLENGE THE FRENCH MOBILE INCUMBENTS

FREEMOBILE TO CHALLENGE THE FRENCH MOBILE INCUMBENTS

DANIEL TORO

SOUTHERN NEW HAMPSHIRE UNIVERSITY

FEBRUARY 20, 2015

1

RUNNING HEADER: FREEMOBILE TO CHALLENGE THE FRENCH MOBILE INCUMBENTS

Identify The Key Economic Characteristics Of The French Wireless/Telecom Segment
(U.S. Sic Code 4813, Uk Sic 6110) Of The Communications Services Industry.
The French telecommunication market is considered to be the largest in Europe with a valuation of $29.2 Billion dollars. Previous to 2012, the mobile communications market was control by three companies (France Telecom's Orange, the Vivendi-owned SFR, and Bouygues Telecom).
In a push by the French government to bring prices
Iliad by Renee Schultes

Iliad has turned the French market upside down since the country's telecoms regulator awarded it a wireless license four years ago. Already an aggressive broadband Internet provider, it launched wireless tariffs as low as €2 a month in January 2012. Iliad has since won a 12% share of France's cell phone subscribers, mainly through piggybacking on incumbent telecom Orange’s network while it installs its own gear. (Schultes, 2014).

The telecommunication market has been transformed by the penetration of Freedom in January of 2012 pushing prices down and improving the service quality for the end consumer. It is going to be interesting to see if the other companies are going to be able to compare with Iliad group, but one thing is clear, the market share is going to continue to keep shifting to the company directions and the winner of this is always going to be the end user.

5

RUNNING HEADER: FREEMOBILE TO CHALLENGE THE FRENCH MOBILE INCUMBENTS

If You Were In A Meeting With The Three Rivals, What Would You Recommend As A
Strategic Response?
I will recommend the big three to do the same strategy than the big three (Sprint PCS, Verizon
Wireless, and T-Mobile) did in the United States telecommunication market. These companies created a new brand for the non-contract market, in which they offer plans with more voice minutes, data, and text message for a 30% to 40% lower than the big four name