Tuesday, December 17, 2013

4G: War "low cost" is declared - The World

The World | 17/12/2013 at 10:54 • Updated 17/12/2013 at 11:08 | By

Xavier Niel, the majority shareholder of the Iliad.

It will be possible for customers of B & You who possess an appropriate terminal to take advantage of 4G for 19.99 euros per month. At this price, they will have unlimited voice and SMS calls as well as 3GB of data. Most greedy “data” may subscribe the second package to 24.99 euros and thus have 5 GB of data.

Tuesday, December 17 in the morning, it was Orange, the leader of the French market, which issued a press release stating that the 4G happen on its good market packages Sosh January 9, 2014. As Bouygues, Orange offers 5 GB of data for 24.99 euros per month. “It would have been logical, given the need for a new terminal and the investment required, the proposal is not 4G see in packages low cost . (…) I do not want to penalize our clients Sosh, who will benefit from a 4G plan in January “, Stéphane Richard said in an interview Figaro on Tuesday. CEO of Orange will scratch the passage Xavier Niel, the boss of Free (and individual shareholder World ), calling “king of confused” and judging “prétientieux and aggressive” .

Read also: Bouygues Telecom and Orange meet Free

Free Mobile

immediately responded on Tuesday, making a long-awaited announcement: The fourth operator offers its customers a rental system high-end smartphone. They will rent the terminal of their choice, Galaxy S4, iPhone 5S or Galaxy Note 3 for 12 euros per month for 24 months, after having previously paid an initial deposit of between 49 to 129 euros. At the end of 24 months, the customer will have the choice between returning the terminal or take another. A system that resembles nothing so much as of the grant.

twists do not seem about to end this sector heckled and weakened since the arrival of Free Mobile with offers low cost in January 2012. It is the decision of the Fourth entering December 3 launch 4G no extra cost to subscribers (19.99 euros for voice, sms and 20 GB of data quantity) that precipitated this new price war.

competitors who rely on 4G for customer loyalty packages on their high-end and hoped recoup their considerable investments in licenses and network hardware, all had very bad reaction to the announcement. For cons-attack, they began by launching a debate on the real cover of Free Mobile 4G extended.


The government is worried that hype: it feared job losses in the sector. “Our message is to tell everyone to keep his composure. The price war is not inevitable, “ said it then at Bercy in early December. “A low cost strategy necessarily leads to under-investment in infrastructure, a degradation of the service rendered and job destruction,” had for their part said Arnaud Montebourg, Minister of productive recovery and Fleur Pellerin, Minister for Innovation and the Digital Economy.

These concerns

executive did not prevent Bouygues announced, Thursday, December 5, the arrival of 4G at no extra cost on all the classic packages, before expanding, Monday, Dec. 16, at low cost.

“It seems they all just anything in the area, says one analyst lower prices certainly saves customers but c ‘ is short-sighted. “ A close observer of the executive succession ” This battle does not seem to meet a strategic vision. It seems that some operators are looking to push consolidation in the industry … “

asked about this possibility, the environment of Ms. Pellerin stated Tuesday that “the important thing is above 4G coverage and availability of high speed broadband to consumers. We will decide on the possibility of consolidation if there is a project makes sense if “. Significant inflection government discourse far Bercy was in favor of the existence of four operators on the market


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