Expected for several months, Orange has finally unveiled Wednesday its new Internet box, on the occasion of his show Hello, dedicated to innovation. With a ‘super wifi’ and improved technical features, it is expected to take full advantage of the rates offered by fiber. The output of this “Livebox” follows the launch last year of the new box of Bouygues Telecom (Miami) and SFR (Zive), also designed for high broadband era.
Orange Free preceding few months, due out its new Freebox Revolution this year. Xavier Niel had, however, unveiled in March 2015 a new version of its entry-box (Mini 4K). Even if it is less violent than in the mobile, the battle between operators remains intense on the fixed and the box are an essential weapon to attract customers.
A tool of conquest
“ The box remains the gateway to all services, all the features that make you want to subscribe to an operator over another , “says Ramon Fernandez, deputy CEO of Orange. If the market demonstrated a certain maturity with approximately 25 million households equipped, lines can still move in the fixed. Witness the tariff offensive by Bouygues Telecom since 2014, with his box to 19.99 euros per month (25.99 euros with the fiber), which allowed him to recruit several hundred thousand subscribers.
If competitors do not really follow the operator in the field of prices, they try to attract new customers through performance reports and services enabled by these new machines and combination with more powerful networks. The Livebox is clearly a new tool to conquer the fiber of Orange. The operator has recently exceeded one million FTTH (fiber to the home). “ And 53% of them are new clients ,” says Ramon Fernandez, who sees the deployment of fiber as a means to regain market share, but also increase revenue.
The fiber yields more than ADSL
Fiber subscribers spend indeed more money than ADSL (5 euros more on average in Orange). Especially because the packages are a little more expensive, but because the quality of service incentive to consume more content (VOD, games …), similar to what is observed in the mobile with 4G . This is what is trying to do too SFR with its new box Zive, which integrates its eponymous service SVoD (video on demand subscription) in its premium offerings.
Today in Internet service providers, it is one that will offer, through its box, the more services, which are means of customer loyalty . “ What makes you stay longer with an operator, it is the service experience says Sylvain Chevallier, partner at Bearing Point. From the moment you allow different members of a household to access from their smartphone or box for all their multimedia content (videos, photos, music …), the customer will think twice before to change operator . ”
Hence the insistence of operators wanting coupled fixed and mobile packages in their offer (quadruple play). Somehow, the “telcos” are in competition with Apple and other Deezer. It is not for nothing that Stéphane Richard spoke of “ true ecosystem “, presenting the LiveBox Wednesday.
Fabienne Schmitt
Roman Gueugneau
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