Thursday, December 19, 2013

Fixed Internet: Bouygues will "declare war" to Free - The Point

The – Published on 12/19/2013 at 20:44

After the promise of a 4G Xavier Niel included in all packages Free, Martin Bouygues against attack by threatening to cut prices.


CEO of Bouygues Martin Bouygues, said Thursday he would “declare war in the fixed internet” by slashing prices to reduce margins rival Xavier Niel , the owner of Iliad, the parent company of Free, in an interview with Figaro .

“In the fixed Internet, the party is over. [...] Bouygues Telecom will provide a real breakthrough in 2014 with innovative technology and services. We’re going to do 150 euros in savings per year to subscribers who choose the fixed service, making a saving of 12.5 euros per month. Who says better? Xavier Niel What do the same thing if able “, a said Martin Bouygues.

“Niel has flip-flopped”

He assured that the margins of Bouygues Telecom were “less than 20%” while those of Free “are above 40% in the fixed”. “I just found that between 2010 and 2013, the fortunes of Xavier Niel assessed Challenges is from 3 to 6 billion euros, placing it in 10th position (the largest fortunes in France, ed.) Who joke we? “Has he added.

According to the head of Bouygues Telecom, launching telephony fourth generation (4G) was “a great success”. “We will cross the course of the first million customers within a few days, [...] which makes nervous Free. Xavier Niel has flip-flopped. He launched the largest precipitation offer, while n ‘ had 700 branches. And when he says that Bouygues Telecom has only 530, this is wrong! There has already been convicted for having denigrated, “he has said.

A surprise offer

Free Mobile (Iliad Group) surprised the industry in early December offering 4G to its customers on all packages, including low-cost 2 euros, without increasing fares . This was particularly harsh blow for Bouygues Telecom has invested heavily to get the most from the authorization was given to him to use for 4G 1800 MHz for which he already had an infrastructure.

This allowed him to open his commercial network with a competitive advantage in terms of coverage. Bouygues Telecom and covered 63% of the population since the launch of 4G network on October 1, while its competitors Orange and SFR reach 40% to 50% coverage by the end of the year.

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