Who is losing subscribers and who is gaining them? The quarterly results of telecom operators provide an update on their ability to win new customers. As the French market is not infinitely expandable, the four players – Orange, SFR, Free, Bouygues Telecom – share the shares of the same pie.
When publishing its financial results at the end of April, Orange announced that it had gained 3,000 mobile subscribers but lost 21,000 landline customers. The increase from 1 to 2 euros in its packages has led to a significant termination rate, estimated at 12% in mobile.
Has this customer volatility mechanically benefited its competitors? Since the withdrawal of its parent company, Altice Europe, from the stock market, SFR is no longer required to publish detailed results. On the other hand, Bouygues Telecom and Iliad (Free) have just communicated their quarterly results.
Bouygues Telecom in strong conquest in the fixed…
Bouygues Telecom posted solid performances. The Bouygues group subsidiary continued its commercial development. Over the quarter, it won 27,000 new mobile and 148,000 fixed-line customers, bringing its subscriber base to 15.2 million and 4.7 million respectively.
This allows Bouygues Telecom to record a turnover invoiced to customers of 1.4 billion euros, up 6% compared to the first quarter of last year. Having carried out tariff increases like Orange, the operator sees its average revenue per subscriber (ABPU, Average Billing Per User) increased. It increases by 0.2 euro in the mobile to 19.7 euros per customer and per month and by 1.7 euros in the landline to 30.3 € per customer per month).
As the rollout of 5G and fiber optics throughout France is far from complete, Bouygues Telecom is maintaining a high level of investment in its networks. Excluding frequencies, it stood at 522 million euros over the quarter, up slightly over one year.
…and Free in mobile
The news is also good for Iliad. In line with its annual results, the parent company of Free posted solid performances. It achieved a turnover of 2.2 billion euros in the first quarter, representing organic growth of 8% in the three countries in which it operates in Europe (7.6% in France).
In France, Free posted a positive balance of 172,000 new subscribers in mobile and 42,000 in high and very high speed. A success that the operator founded by Xavier Niel attributes to the strength of its brand and its positioning. in terms of value for money.
Unlike its competitors, Free has not passed on the effects of inflation to its prices. It has even undertaken to block its mobile plans at 2 and 19.99 euros until 2027. Free also intends to make the business segment “ a powerful driver of growth », with the recent launch of a cybersecurity offer.
Like Bouygues Telecom, Iliad makes heavy investments. They amounted to 553 million euros in the first quarter of 2023, up 14% on a pro forma organic basis. It is not just a question of deploying or modernizing its network infrastructures.
The growth of these investments is mainly driven by France and the reconstitution of Freebox stocks “after the strong recruitment of new subscribers in recent quarters, the majority of which in fiber with the latest generation Freeboxes”specifies the group in its press release.
After SFR, Free condemns Bouygues Telecom
The battle between the two operators is not only the commercial front, it is also on the legal ground. On the occasion of the publication of its results, Bouygues Telecom announced that it had paid Free Mobile the sum of 308 million euros, ” increased in particular by the legal interest requested “.
Last February, Bouygues Telecom was ordered by the Paris Commercial Court to pay these damages to Free Mobile, in the context of a dispute over so-called “subsidized” offers, linking the sale of mobile plans with a commitment including a subsidized smartphone.
In 2012, Free had already attacked SFR on the same principle and had won a victory before the Court of Cassation. ” Although the validity of the provisional execution is firmly contested by Bouygues Telecom before the competent courts, Free Mobile has taken the decision to proceed with the forced execution of the sentence. “Said Bouygues Telecom in a brief press release.