4G price war in France hots up
Leading French operator Orange is set to reduce its 4G price plan this week and will be closely followed by rival mobile company SFR.
The cuts are a response to low-cost French operator Iliad’s announcement in December 2013 that it will offer 4G to its customers at no additional fee.
Since joining the market two years ago, Iliad has been leading a price war in the French market, forcing rival operators to lower their prices to compete with its low cost deals. Strong competition has resulted in falling revenues in the French mobile market.
Iliad’s announcement was seen as disappointing news for rivals Orange, SFR and Bouygues Telecom, which have invested heavily in 4G networks and were aiming to utilise the network to generate greater revenue.
Rival operators which have heavier staffing and more cost have been struggling to keep up with Iliad’s low-price strategy.
Larger companies have been trying to cut costs to reduce prices for consumers.