Monday, October 15, 2012

Vivendi's SFR Reacts to French Mobile Market Competition

French mobile phone operator SFR, a unit of Vivendi, is in talks with unlisted cable company Numericable, a move many will attribute to an intensely competitive French mobile market, in the wake of the Illiad-owned Free Mobile pricing disruption. 

The move would diversify SFR's revenue base by adding fixed network customers and revenues to its mobile assets. 

Some think it is possible, perhaps likely there will be a similar attempt to disrupt U.S. mobile market pricing, if Softbank is able to complete its planned purchase of Sprint Nextel. The reason is that Softbank did precisely that when it entered the Japanese market.

And it worked. Softbank, within two years of its launch, was winning about 44 percent share of new customers or switchers in the Japanese market. 


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