France Telecom puts weight behind 4G network

24 April 2013 | Mitch Sayers


France Telecom CFO Gervais Pellissier has said he hopes the company’s 4G LTE network will help re-establish the operator in its domestic market.

Pellissier’s comments follows the operator’s 2013 Q1 figures indicating a 2.9% year-on-year decline in mobiles services’ revenue. Over the same period, its customer base rose 1.3%.

Average revenue per customer dropped 10.7% year-on-year, with Pellissier adding the decline could reach as much as 13% during 2013.

Low cost operator Free Mobile has taken a large market share by offering budget tariffs, and meant that rival operators have had to lower tariffs to retain customers.

Pellissier said he believes the development of France Telecom’s high-speed mobile internet would win back customers.

“The price war in France remains ferocious,” said Pellissier.

“But in the coming months, we will be able to test the appetite consumers have for 4G mobile services, and we hope this will allow us to recreate value.”

France Telecom-Orange launched its 4G LTE network in ten further French locations, totalling 15 towns and cities covered by the high-speed platform this year.

The company’s CEO Stéphane Richard said he had “renewed and strengthened” the management team to enable efficiency, particularly in the field of innovation.