Fixed-Mobile Convergence to Become Key Competitive Focus in France
Published on: 12th Jan 2011
Note -- this news article is more than a year old.
Just over half (51 percent) of all French households will subscribe to triple play bundles in 2015 up from 36 percent in 2010 according to a new report from Pyramid Research.
The regulatory environment encourages competition, but a saturated market makes it a tough operating environment. "Convergence is the key competitive factor in France, and it is one of the most advanced convergence markets in the world," says Sylwia Boguszewska, Analyst at Pyramid. "The bulk of convergence will continue to be in triple-play services, mostly bundles of voice, TV, and broadband," she adds.
France leads the European telecom market in terms of the cheapest and most innovative triple-play bundles. "This is driven by intense competition, but also in part by a tax break (while broadband and phone services are charged at a 19.6 percent rate, the other 50 percent of the bundle is categorized by most telcos as TV services, and is thus charged at a lower 5.5 percent rate)," states Boguszewska. "For instance, the recent Orange quad-play promotion includes: Internet (up to 20 Mbps), TV (up to 120 channels), voice (unlimited land line calls in France, one hour to mobile) and 3G+ mobile broadband for euro 34.99 ($44.03)," she indicates.
"Operators are also moving to quad-play services by adding mobile broadband or voice to their portfolios," says Boguszewska. Pyramid expects quad-play adoption to be in 4.5 percent of all households by 2015. "Fixed-mobile convergence will become an increasingly important competitive focus over the next couple of years as femtocell technology matures and become more affordable," she says.