Monday , October 26 2020

Ready for 5G, Free Mobile wants to simplify its proposals

Xavier Niel and Thomas Reynaud took advantage of the free convention to slide some clues on their mobile phone designs. On the program: 5G and reduction in the number of packages.

Xavier Niel 900.jpg© Wikimedia Commons

Our Xbyier Niel is relaxed, in blue denim and a black t-shirt, who introduced himself to the Freenautes during the Free Convention in May 2019. The opportunity for him to return on Free Mobile's position, d already ready to invest in the use of 5G. The head of Free has already explained that the operator's 4G sites are reinforced with fiber and that the antennas have ready equipment to receive 5G a simple way and for lessSo only one thing is waiting for free from Free Mobile: opening government-organized auctions will allow operators to buy 5G frequency bands that they will take advantage of. commercially thereafter.

A process is feared, and for good reason, the 5G of strategic interest is such that this type of auction has exploded the price of licenses in Germany and Italy. While the French government is seeking revenues to boost the state budget, it could be encouraged to impose quite expensive entry conditions to these licenses.

This great unknown doesn't start Xavier Niel's enthusiasm, but we push the operator's general manager, Thomas Raynaud, to be more careful: " tWe await the conditions for the provision of frequencies by the State (…) It is essential to avoid deadly bids, which would kill competition and investmentIn the opinion of many experts, the state could try to collect about 3 billion euros in the context of this operation. In Germany, there are 6 billion euros that the operators have to invest in these frequencies In Italy, 6.5 billion – investments are so heavy that they could be counterproductive, limiting real operators' investments in the network.

5G packs, yes, but less

However, Xavier Niel attacks him: Freedom will remain on his historic values. "Our future 5G packs will respond to our strategy of streamlining mobile offers (…) You know my position on unlimited 4G offers sold as one package; 5G will not derogate", says the founder.

In terms of simplifying proposals, Xavier Niel also made a shocking statement when he spoke: "We currently have three packages, this makes one too much"Free Mobile sells a package for € 2 per month (offered to Freebox subscribers, including 2 hours of calls, unlimited SMS and MMS, 50 MB of 4G), flat rate of € 8.99 per month (calls, unlimited SMS and MMS, 50GB of 4G) and its flagship package, at € 19.99 per month (€ 15.99 for Freebox subscribers, unlimited calls, SMS and MMS, 100GB of 4G). Between them will disappear, maybe just at the time of change proposed to 5G.

The rationale would be that the intermediate package, launched in a "special free series" and to be renewed for almost a year, is the cost of this strategy. Free wants to continue to raise its average revenue per user (the ARPU), which will include a strategy to push customers to the most expensive offer, the unlimited 4G scheme, which represents 56% of its subscribers, but with the goal of increasing this proportion to 80% by 2024. However, the package to € 8.99 Free Mobile is certainly the most attractive, knowing that it is also interesting for free t as customers are automatically switched to the most expensive package after a year. In these conditions, the package to 2 €, the identity of the effort to free prices to break, which could disappear. Case to follow … t

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