Illiad's "Free" mobile service was intended to disrupt the French mobile market, and it seems, at least for the moment, that Illiad is succeeding.
French conglomerate Bouygues posted sharply lower first-half profits for its second quarter of 2012, largely because of price competition from Free, which has caused the other leading mobile firms in France to cut prices.
Bouygues also cut its annual profit forecast for its telecoms division unit by roughly 12 percent as a result of the expected competition, Reuters reports.
Martin Bouygues, Bouygues chief executive, directly blamed Free Mobile for his company's woes.
"The difficulties we are experiencing are due to competition and the low prices charged by Free," the Bouygues CEO said.
France Telecom, using the brand name "Orange," warned that it expects average revenue per user to fall by 10 percent at its domestic mobile unit Orange France in 2012, as operators engage in a price war following the entry of new low-cost operator, Iliad Group’s Free Mobile, in January.
Wednesday, August 29, 2012
Illiad's "Free" Business is Hammering Rivals
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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