So, how does _FREE

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jpollock

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Topic # 96052 19-Jan-2012 10:02

I didn't know if this fit this forum, it's a general mobile discussion, but I didn't think it fit in any particular carrier's forum. :)

Anyone else seen this?

Unlimited SMS (France Only)
Unlimited Calling (Includes international calling to all US/Canada phones, only landlines elsewhere)
3GB data (throttled when exceeded)
Unlimited WiFi
Eur $20/month - or $16/month if you're a broadband customer

60 SMS (National only)
60 mins (National only)
Eur $2/month - or FREE if you're a broadband customer.

http://mobile.free.fr/

However, it does look like this is a limited launch promo, I've read that it's only for the first 3 _million_ subscribers.

https://plus.google.com/118292867302583509179/posts/WKo66zzfBzG

It looks like they're having enough of an impact that they're killing the MNP system (100k subs/day):

http://www.forfaitfree.com/2012/01/free-mobile-menace-le-systeme-de.html

So, what would need to happen to allow that to happen here in NZ? It looks like it's about an order of magnitude cheaper than NZ. Is Free subsidizing their early subscribers to the toon of $300m/year?

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ajw

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Reply # 570718 19-Jan-2012 10:50

And this is what I was reading about them this morning.

Free Mobile reportedly adding 100,000 customers a day
Wednesday 18 January 2012 | 10:11 CET

French operator Free Mobile will have 1 million customers by the end of January, according to Orange, Les Echos writes. In its first week, the operator reportedly signed up an estimated 100,000 to 150,000 customers a day. The volume of number portability requests was so high that Free Mobile voluntarily limited the number of requests made to EGP, the entity responsible for mobile number portability, to avoid total chaos, EGP COO Nicolas Houery said. Free Mobile is sending 35,000 to 40,000 portability requests a day to its cou nterparts. In consultation with telecom regulator Arcep, EGP had forecast a 40 percent increase in portability requests, he added. The body is studying how to resolve the problem. Adding servers will not be enough. It may open a second platform to handle only requests involving Free Mobile and the three MNOs, Orange, SFR and Bouygues Telecom.

hamish225

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Reply # 571432 20-Jan-2012 20:06

WOW, somone needs to do this here, obviously not this exactly, we all know that's not going to happen. but like drastically lowering mobile charges like this.

jpollock

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Reply # 571545 21-Jan-2012 09:04

I know, I'm curious where they are saving money. They've found an order of magnitude cost savings somewhere!

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sbiddle

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Reply # 571547 21-Jan-2012 09:13

When you're the last player to enter an already saturated mobile market I guess you have to take a fundamentally different approach to everybody else if you want to succeed. Signing up 3 million customers on cheap plans is clearly a good way to start this!

jpollock

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Reply # 571559 21-Jan-2012 10:03

Yeah, it's definitely making a splash. Orange is offering a similar service for e65/month. So, he's subsidizing those 3m subs by ~e45/month = e540/yr = e1.6b/yr! That's more than his entire network rollout is costing (according to wikipedia).

Although, the e540 is without a factor of 2 of what I could find for a customer acquisition cost. I guess all of the free publicity might help?

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NonprayingMantis

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Reply # 581227 14-Feb-2012 09:46

I can only assume they must be banking on the benefits of bundling the mobile with the fixed line, and backing their ability to upsell people on the free/2E plan to the 20E plan.

There is not a chance in hell they are making any money on that low end plan, and pretty unlikely they will make much on the high end one either. (especially since they only cover about 30% of the country with their network according to wikipedia, the rest is roaming onto Orange)

wellygary

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Reply # 581228 14-Feb-2012 09:59

sbiddle: When you're the last player to enter an already saturated mobile market I guess you have to take a fundamentally different approach to everybody else if you want to succeed. Signing up 3 million customers on cheap plans is clearly a good way to start this!

They also have an advantage as the 2 largest 3G networks in France bought their spectrum in the middle of the dotcom frenzy of 2000-2001 and paid billions of Euro,

Whereas this operator only needed to cough up 240 million Euro and the big boys have just forked over a few billion more Euro for 4G licenses,

One imagine that this network will be one of the last major 3G networks built in Euroland as operators look to move to push customers to services on 4G which generate more revenue.

jpollock

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Reply # 582926 17-Feb-2012 17:52

I was also reading that they've been building substantial capabilities into their set top box, it's also the ADSL modem and wifi router. They then use the wifi to offer free wifi to any of their customers in the area.

The rumour is that they're going to add a femtocell to it too, allowing them to get network coverage without having to build out their network.

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