Iliad launches in France, France Telecom may need to cut payout

Reuters

France's broadband specialist Iliad launched its long-awaited mobile service on Tuesday with aggressive offers that sharply undercut rival operators' prices in a bid to carve out a profitable chunk of Europe's second-largest telecom market.


The French state may have to accept a dividend cut to allow state-owned France Telecom (Paris) to respond to aggressive pricing by Iliad (Paris) without penalizing its investments, French regulator ARCEP was quoted saying on Thursday.


"If the state, which is the main shareholder of France Telecom, wants this operator to keep its investments at a high level, it may agree a dividend cut. There is clearly a choice to make. It would be an important signal," ARCEP chief Jean-Ludovic Silicani told French daily Les Echos.


Iliad’s launch caps a six-year quest for its founder Xavier Niel, who had to apply twice and fight off tough lobbying from France's existing operators who did not want him to bring the low-cost, high-tech formula that Iliad honed in broadband to their mobile turf.


Iliad said it would charge $25 a month for a monthly mobile phone service offer with unlimited texts, calls, as well as 3 gigabytes of mobile data. None of its offers will have contract length requirements, Niel said in a press conference.


(Reporting By Christian Plumb)

ArticleTools

Featured Reports

Geo IoT Outlook: Technologies, Services, Applications

Geo IoT is anticipated to move well beyond simply the ability to determine proximity for commerce and various retail applications. Longer term, presence detection and location determination will be a critical aspect of IoT privacy, security, and preference management for both consumer and industrial applications. 
Buy now

 

DAS Market Analysis and Forecasts 2016 - 2021

Analysis of the DAS market, including carrier WiFi, small cells, and SON, and the leading companies in the DAS ecosystem and their solutions.  The report also includes evaluation of market drivers, challenges, and provides forecasts for 2016 to 2021.
Buy now

 

NextGen Network OSS/BSS Forecast 2016 - 2021

Comprehensive coverage of NGN OSS/BSS including opportunities within Big Data and IoT, analysis of the drivers and issues related to the technical and business aspects of OSS/BSS, deployments and operations issues, and quantitative analysis with forecasts for anticipated growth through 2021.
Buy now