[June 04, 2012] Strategy Analytics Releases New Report, 'Free Mobile Rocks French Market in Q1' Tweet Jun 04, 2012 (Close-Up Media via COMTEX) -- Free's January 2012 launch of mobile services in France had a significant impact on market structures in Q1, with profit margins under threat as the incumbent operators adjust their business models. According to the latest report from the Strategy Analytics Wireless Operator Strategies (WOS) service, "Free Mobile Rocks French Market in Q1," Free has delivered the best results for a new entrant into a mature European market and, while its market share gains cannot be sustained, it has already had a lasting impact. Offering significant discounts below prevailing French mobile price points, Free has already gained an impressive 2.6 million mobile customers and 4 percent market share in Q1. By contrast, hoping that their own low-cost sub-brands and quad-play bundles would fight off Free, companies Orange, SFR and Bouygues Telecom all saw Q1 customer numbers and revenues decline. Strategy Analytics forecasts French mobile service revenues to decline 6 percent in 2012, under the heightened competitive pressure. "Incumbent operators will need to maintain their focus on quad-play offers and low-cost SIM-only plans during 2012, in order to minimize Free's significant impact in this market," comments Phil Kendall, Director of the Strategy Analytics Wireless Operator Strategies service. "Free is clearly a trusted brand in the French telecoms market and this launch has only enhanced its price-fighting reputation with consumers." Sue Rudd, Director, Service Provider Analysis, added, "Having already matched Free's SIM-only propositions, Orange, SFR and Bouygues will need to minimize any knock-on effect for their more expensive postpaid plans. To protect margins this year, incumbent operators must invest in newer IP infrastructure in order to reduce operating costs and restructure handset subsidies." Strategy Analytics provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. More information: strategyanalytics.com ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]