If Bouygues Telecom bought Orange, there will remain only three telecom operators in the market: Orange, SFR, Numericable and Free. In the mobile, and fixed. That he may raise prices of your subscriptions? In any case the risk of leading the association UFC-Que consumer Choosing Tuesday.
The owner of Orange, Stéphane Richard, has instead assured Tuesday on RTL: “price in France was among the lowest in the world, France is in a privileged position and that. This is an achievement that is definitive So I say very clearly:. in any way should there be a reconciliation between Orange and Bouygues Telecom, it does result in a price increase, the question ‘ is not there. ”
If there is indeed a risk of rising prices, it is too early to cry wolf. And consumers will not see a return to the situation before the arrival of Free Mobile.
In the mobile: even at 3, Free Mobile is
“For the first time since 2011, the mobile telephony market would be characterized only three operators, a configuration which made France the country where the subscription prices were 25% higher than the European average and that gave rise to practical severely condemned by the Competition Council “, said the association consumers. It refers to the telecoms landscape before the arrival of Free Mobile in 2012, and agreement on price from 1997 to 2003 between Orange, SFR and Bouygues Telecom, who had been sentenced to 442 million euro fine .
Several factors make it more difficult an agreement of this type today. growth plans without commitment , market saturation (now it is possible to win customers while maintaining its market share: it must take market share from competitors), and relations between the three remaining operators Xavier Niel. Free Mobile built entire speech on the argument that it did not take its customers for pigeons.
However, in a context where one of the operators priority is to recover their margins, which is much spent the last years by cost reduction, return to three operators could facilitate a movement already started rising prices. But this increase should be accompanied by additional services (TV content for SFR, 4G services such as mobile banking for Orange …)
In the fixed: it is more complicated
The acquisition of Bouygues Telecom also lead to reduce to three the number of fixed Internet access providers, “by removing the actor playing the role of recently market agitator” also stresses the UFC-Que Choisir.
Indeed, Bouygues Telecom conducted a very aggressive marketing strategy to take customers to Free the past two years in ADSL. But if Free decided to invest more in fiber, it is in this market we can expect more dynamic.
The negotiations are not finished
Since the new Orange Bouygues Telecom together reach about 50% share of market, the Competition Authority will impose asset disposals (antennas, subscriber base, shops …). This must take good care investment banks and the staffs of all operators, in this moment . And it could also ensure the maintenance of dynamic competition on the market. Everything will depend on the balance to be found in fine.
For example, if Free Mobile retrieves the 4G network while Bouygues Telecom maintaining its aggressive commercial strategy, it will represent a real danger to competitors and this should keep the market tension. If SFR, meanwhile, bought some customers (he lost in 2015), they will demand a quality of service equivalent, therefore it will force the company to the red logo to boost its investments in infrastructure.
Without undue reliance boss at Orange, we can hope that the consolidation will not result in an artificial increase in prices of our telephone subscriptions in the coming years.
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