The cellphone bills of French mobile customers are to be halved in what is being promised as the biggest shakeup in the French mobile market in recent years. New 3G player Free Mobile, a subsidiary of Illiad, has promised to use a variety of different network technologies to reduce its own costs and undercut the competition by half.
And so far it seems to be working. The firm has already launched a contract-free plan priced at a mere €19.99 a month, which includes unlimited calls and text messages, in addition to 3Gbytes of internet usage. Customers also have the option of an entry-level option priced at €2 a month with no contract which includes 60 minutes of calls and 60 text messages. Customers who use Iliad as their broadband supplier will receive the unlimited mobile plan for the reduced amount of €15.99. The move by Free Mobile as already seen established networks such as Orange, Bouygues and SFR forced into offering their own reduced price plans.
In order to make the price plan work Free Mobile will have to keep its costs lower than its competitors, which it claims it can do through combining a use of Wi-Fi, HSPA and in the future 4G. The firm also has the advantage of being able to use its installed base of home gateways, which when it rolls out femtocells will increase the cost efficiency of its mobile data delivery systems.
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