Summary

As of the data provided up until 2015, the French mobile operator market is characterized by its high penetration rate and dynamic nature, being a key sector of the French economy. It is mainly divided into traditional mobile network operators (MNOs) like Orange, SFR, Bouygues Telecom, and Free, as well as over forty mobile virtual network operators (MVNOs). Although residential telephony was on the decline, the mobile segment was thriving with approximately 57.5 million people having service plans and over 70 million SIM cards in circulation in France as of that time. The market, dominated by large, long-established players, has high barriers to entry due to infrastructural demands. Nevertheless, the sector experienced significant disruption with the entry of Free Mobile, leading to a substantial drop in pricing and a shift towards non-commitment contracts, indicating a trend towards increased competition and market consolidation. While the sector remains lightly regulated, profitability is driven by volume, pushing a gradual trend towards market concentration through significant financial transactions. It should be noted that specific numerical data trends starting from 2020 are not available in the provided text..Title: French Mobile Telecommunications Market: A Dynamic and Competitive Landscape In France, the mobile telecommunications market has undergone significant transformation and shows a strong dynamism marked by a very high penetration of mobile telephony and internet access services. With nearly 57.5 million French people subscribing to a mobile plan and over 70 million SIM cards active, the market reflects the crucial role of mobile connectivity in the lives of consumers. Traditional mobile network operators (MNOs), such as Orange, SFR, Bouygues Telecom, and Free, maintain their dominance, benefiting from their own network infrastructures. Meanwhile, the competitive landscape sees diversity with the presence of more than forty mobile virtual network operators (MVNOs), which operate using the networks of the established traditional operators. The mobile sector has proven itself to be a key sector in the French economy, contributing significantly to its vitality. However, the market structure also hints at high barriers to entry, predominantly due to the substantial investments required for network infrastructure like antennae and the procurement of communication minutes. This has meant that new entrants tend to be part of larger conglomerates that can afford such strategic diversification. Moreover, the sector has seen a marked shift in pricing and customer loyalty paradigms with the entrance of Free Mobile, which has been a disruptive force. Historically, prices had been maintained at elevated levels, but with the coming of Free Mobile, there has been a drastic reduction in prices. The shift towards contractual flexibility has also been notable, with a movement from forced loyalty to non-commitment contracts, allowing consumers greater freedom and mobility between service providers. Despite this, the sector is described as lightly regulated, which suggests a possibly more laissez-faire approach to oversight, allowing the market forces to play out more freely. Creating volume is imperative to profitability in this sector, which is why there is a growing trend towards market concentration as companies seek to maximize their market share and benefit from economies of scale. Major financial operations and mergers have been testament to this ongoing consolidation trend, which serves to further define the market power of the leading actors in the French mobile telecommunications sector..### Chapter: Titans of the French Mobile Telecommunication Landscape The French mobile telecommunication sector stands as a testament to innovation, customer-centric evolution, and competitive fervor. At the heart of this landscape are key players wielding significant clout and shaping the market dynamics with their strategies and services. Below, we delve into the profiles of these formidable entities within the French mobile telephony ecosystem. #### Orange Leading the pack is Orange, a behemoth in not only the French market but also an influential player on the international stage. As a traditional mobile network operator (MNO), Orange boasts a substantial subscriber base, a wide array of services, and its own extensive network infrastructure. The company has distinguished itself through a relentless pursuit of technological advancements in mobile telephony and internet access services which have kept it at the vanguard of the industry. #### SFR Another major player is SFR, which has historically positioned itself as a competitive force in the telecommunications arena. Like Orange, SFR operates its own network and offers a full spectrum of mobile and internet services. SFR's strategies have often focused on providing value-added services and leveraging partnerships to expand its reach and enhance its offerings. #### Bouygues Telecom Bouygues Telecom, a subsidiary of the industrial conglomerate Bouygues Group, is renowned for its robust network and innovative service packages. The firm maintains a significant presence in the market by catering to a wide demographic of customers, from residential to enterprise, and is known for its customer service and flexible offerings. #### Free (Iliad) The landscape of French mobile operators witnessed a seismic shift with the entry of Free Mobile, a subsidiary of the Iliad Group. Free disrupted the status quo by introducing unprecedented pricing models, causing a precipitous drop in tariffs and an industry-wide shift towards no-contract service offerings. This strategic move not only carved out a significant market share for Free but also redefined consumer expectations and market practices. #### Virtual Mobile Network Operators (MVNOs) Complementing these titans are over forty virtual mobile network operators (MVNOs) that have carved niches within the market. These entities do not own their network infrastructure but rely on the networks of traditional MNOs to provide their services. They cater to specialized market segments, offering tailored plans and competitive pricing to distinguish themselves among users. As the sector continues to evolve, these key players are constantly re-positioning and reinventing themselves to stay ahead of the curve. The result is a market characterized by innovation, customer empowerment, and a continuous drive
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  • Last update : 01/09/2023
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Summary and extracts

1 Market summary

1.1 INTRODUCTION

A mobile operator is a telecommunications company offering both mobile telephony but also of the mobile internet access services . The operator offers these services by providing a SIM card to the customer who inserts it into his mobile phone or tablet to access the network (GSM, CDMA, UMTS, WiMAX or LTE standards). The mobile operator must also market and market the product and assist its customers by internalizing or outsourcing processes.

There are two main types of mobile operators in France:

  • The traditional mobile operators (MNOs) which have their own mobile network: Orange, SFR, Bouygues Telecom and Free
  • The virtual mobile operators (MVNOs) which use the network of traditional operators: more than forty mobile virtual network operators in France

The telephony sector is now almost exclusively mobile: the residential telephony segment has been in a slow decline for many years. The telephony sector is one of the most important sectors in the world key sectors of the French economy with a certain dynamism and a very high penetration rate within households. In 2015, nearly 57.5 million French people had a package and more than 70 million Sim cards were in circulation in France.

The sector is focused with very large players historically present in the sector such as Orange, Bouygues or SFR. The barriers to entry are consistent with the need for antennas that can be owned or not depending on the models and possibly purchases of communication minutes.... Thus, the new players are essentially the result of the strategic diversification of large conglomerates such as Virgin, for example.

The sector was completely disrupted by the arrival of Free Mobile that challenged the prices practiced in the market. These tariffs, formerly kept high, have literally collapsed. Similarly, there has been a paradigm shift from a high level of forced customer loyalty to a contract without commitment. The telephone sector is poorly regulated in France. This is a sector where volume must be created to be profitable, which is why we are witnessing a gradual concentration of the sector with major financial operations.

List of charts

  • Evolution de la taille du marché du numérique
  • Taux de croissance annuel moyen des différents acteurs de l'écosystème numérique
  • Répartition de la taille du marché du numérique, par région
  • Nombre de cartes SIM en service (hors cartes MtoM)
  • Evolution des revenus des services de communications électroniques, par type
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Latest news

Philippe Wahl: "La Poste, multi-functional" | Philippe Wahl: "La Poste, multi-functional" - 04/12/2023
  • The number of letters sent in 2023 will be six billion, compared with 18 billion fifteen years ago.
  • La Poste employs some 240,000 people, including 65,000 letter carriers.
  • La Poste's plan calls for the delivery of five million meals by 2023, in over 200 towns and cities.
  • la Poste, which specializes in parcels in France and abroad, accounts for 52% of La Poste group's sales
  • La Poste develops a digital safe service with Docaposte.
Orange fined 26 million euros - 09/11/2023
  • Fine imposed on Orange by Arcep: 26 million euros
  • Orange commitment in 2018: Fiber optic coverage of 3,000 communes in less densely populated areas of the country
  • Target connection rate for 2022: 100%
  • According to Arcep, at the beginning of 2022, Orange had only achieved 88% of its coverage target.
  • Number of premises not connected according to Orange: Approximately 540,000.
  • Orange's new commitments: 96% coverage of major cities and 98.5% coverage of medium-sized towns, at a total cost of several hundred million euros.
Bouygues Telecom rebounds - 07/11/2023
  • Bouygues Telecom now has 15.4 million mobile customers, with a gain of 217,000 since the start of the year thanks to the professional market.
  • The operator also has 3.4 million fiber subscribers, with a gain of 425,000 since January.
  • Sales were up 3% year-on-year at the end of September.
  • Operating income after rent (Ebitdaal) rose by 10.8% to 1.451 billion euros in the first nine months of the year.
  • Bouygues Telecom was ranked as the best-performing operator for fixed Internet quality, and topped the last four barometers for Wi-Fi quality.
  • Orange and SFR currently account for 80% of the business services market, while Bouygues Telecom holds less than 10%.
  • Bouygues Telecom accounted for only 14% of its parent company's sales in the first nine months of the year, but generates almost 40% of its operating income.
La Poste enters the world of healthcare - 19/10/2023
  • La Poste has a network of 35,600 access points in France.
  • Since 2017, La Poste has begun to diversify into the healthcare sector, acquiring several healthcare companies
  • Currently, La Poste accompanies 140,000 patients at home on medical prescription.
  • Nearly one million meals delivered to homes in one year.
  • 30 million hospital admissions are managed each year using its administrative management software (Maincare).
  • More than 300,000 teleconsultations have been carried out thanks to La Poste.
  • La Poste has a digital cloud solution (NumSpot) "made in France".
  • La Poste forecasts healthcare sales of 500 million euros by 2030, compared with 300 million today.
  • La Poste has developed an AI solution for healthcare through its NumSpot subsidiary.
With five million fiber subscribers, Free responds to criticism from the regulator - 18/07/2023
  • Free has reached 5 million Internet subscribers via fiber, exceeding their initial target of 4.5 million subscribers planned for 2024.
  • The number of Free's fiber subscribers has increased sevenfold in five years.
  • Nearly 70% of Free's fixed-network subscribers prefer fiber to ADSL.
  • Free Infrastructure serves just under 1% of the 33 million French households that have subscribed or could subscribe to fiber.
  • SFR has 4.5 million fiber subscribers, Bouygues Telecom 3 million, and Orange leads the way with 7.46 million.
Smartphones: Orange commits to recycling more - 01/07/2023
  • The aim is to recycle 20% of new smartphones sold by mobile operators by 2030.
  • Twelve telecom operators, including Orange and Tele2, are involved in this recycling project.
  • There are currently 5 billion unused cell phones in the world, and recycling them would recover the equivalent of 8 7.
  • Orange's take-back and recycling rate has risen from 13.4% to 22.3% by 2021
  • 1.9 million phones were recycled by Orange in 2021.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Orange Groupe
Free (Iliad)
Bouygues Telecom
SFR
La Poste

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