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 Friday, March 30, 2012

French mobile and broadband operator Bouygues Telecom will cut the price of its mid-range mobile subscriptions with subsdised handsets on 19 March. Since the market entry of Free Mobile, MNOs have cut the price of their low-cost brands and quad-play plans with unlimited mobile, but other than commercial gestures by customer services, the announced price of mid-tier services has not changed. Les Echos reports that  Bouygues will halve its number of Eden subscriptions. Two-hour call package prices will come down by only around 10 percent, but packages with unlimited calls, such as the Eden Smartphone 1GB plan, will come down to EUR 49.90 from EUR 79.90 a month.

Bouygues currently sells few unlimited voice plans, with most customers opting for plans costing EUR 35-45 a month.  The new pricing is likely to motivate customers to opt for unlimited call plans, according to Bouygues’ deputy director for consumer, Frederic Ruciak. Only 10-15 percent of Bouygues’ customers are now choosing Sim-only subscriptions and fewer than 5 percent choose Sim-only plans with mobile data. Bouygues Telecom announced that it expects a 10 percent fall in revenues in 2012, a year in which it aims to save EUR 300 million a year. The company said that fixed broadband is continuing to grow, but that growth in Sim-only offers and the arrival of Free Mobile would have a negative impact on revenue.

Source: Telecompaper.