| Free | |
|---|---|
| Type | SAS |
| Founded | 1999 |
| Founder | Xavier Niel |
| Headquarters | |
| Area served | France |
| Key people | Xavier Niel, Maxime Lombardini, Rani Assaf, Antoine Levavasseur, Thomas Reynaud |
| Industry | Telecommunications |
| Products | ISP |
| Services | Quadruple play
|
| Revenue | 1,212 million EUR (2007) ▲ +29.7% [1] |
| Net income | 150.2 million EUR (2007) ▲ +24.4% [1] |
| Owner | Iliad |
| Employees | 2275 (2007) [2] |
| Website | www.free.fr |
Free is a French ISP, which is a subsidiary of Iliad. It operates in France.
It was the first company to offer a Triple play service in France[3][4][5], through its self-produced singular Freebox set-top box. It claims to be the first company to have invented the box marketing concept in France [6], in reference to all the other french ISP which thereafter released Triple play modems named to include the English word box. These boxes provide comprehensive telecommunication services such as high-speed internet, telephone and digital television packages. In 2007 - a consolidation year in the French broadband market - Free was the only ISP brand to gain market share [7].
Contents |
Free was the third ISP in France to offer access to the Internet without subscription nor surcharged phone number in February 1999 [8]. Its predecessors in the niche of access without subscription were World Online on 1999-04-01, then Freesurf on 1999-04-19. In 2002, Free was the first ISP to provide a V.92 connection [9].
| Free dial-up offer milestones | |||
|---|---|---|---|
| Date | Technology | Down IP | Up IP |
| 1999-02-27 [8] | Voiceband | 33.6 kbit/s | 33,6 kbit/s |
| 2002-02-27 [9] | V.92 | 56 kbit/s | 33,6 kbit/s |
| Free bundled ADSL offer milestones | |||
|---|---|---|---|
| Date | Technology | Down ATM | Up ATM |
| 2002-09-19 [3] | ADSL | 512 kbit/s | 128 kbit/s |
| 2003-12-12 [10] | ADSL | 1024 kbit/s | 128 kbit/s |
| 2004-07-27 [11] | ADSL | 2048 kbit/s | 128 kbit/s |
| 2005-02-09 [12] | ADSL | 10 Mbit/s | 320 kbit/s |
| 2005-07-20 [13] | ADSL | 10 Mbit/s | 1 Mbit/s |
| 2008-03-20 [14] | ADSL2+ | 22 Mbit/s | 1 Mbit/s |
| Free unbundled ADSL offer milestones | |||
|---|---|---|---|
| Date | Technologies | Down ATM | Up ATM |
| 2003-11-27[5] | ADSL | 1024 kbit/s | 256 kbit/s |
| 2003-12-12[10] | ADSL | 2048 kbit/s | 256 kbit/s |
| 2004-06-04[15] | ADSL | 5 Mbit/s | 350 kbit/s |
| 2004-08-24[16] | ADSL | 6 Mbit/s | 1 Mbit/s |
| 2004-10-20[17] | ADSL2+ | 15 Mbit/s | 1 Mbit/s |
| 2005-01-06[18] | ADSL2+ | 20 Mbit/s | 1 Mbit/s |
| 2005-11-08[19] | ADSL2+ | 24 Mbit/s | 1 Mbit/s |
| 2006-07-26[20] | 28 Mbit/s | 1 Mbit/s | |
| 2007-06-21[21] | 28 Mbit/s | 1 Mbit/s | |
| Free FTTH deployment milestones | ||||
|---|---|---|---|---|
| Date | Technology | Down IP | Up IP | Deployment |
| 2006-09-11 [22] | Iliad P2P [23] | 50 Mbit/s | 50 Mbit/s | One NRO and some testers in Paris |
| 2007-08-31 [24] | Iliad P2P [23] | 100 Mbit/s | 50 Mbit/s | Some NROs and few subscribers in Paris [23] |
| 2008-06-26 [24] | Iliad P2P [23] | 100 Mbit/s | 50 Mbit/s | Inauguration of Montpellier FTTH network [25] |
Free announced on 2006-09-11, the launch of the deployment of a new FTTH network for its subscribers[22]. The initial plan targets by 2012 the coverage of Paris as well as some towns in Paris suburbs and elected neighborhoods in french provincial cities. In December 2007, the work was done at 30% and the remaining was progressing "at a furious pace" [26].
On 2007-08-31, Free details and updates the offer. The download bandwidth will be 100 Mbit/s and TV services will be available on two Televisions (still for € 29.99 / month) [24].
Free has developed its own fiber network technology, called Iliad P2P, based on Ethernet in the First Mile and having a point to point (P2P) topology [23]. High curvature optic fibers are manufactured by the Dutch company Draka [27][28].
The deployment is still essentially in the horizontal phase (vertical phase is the connection to the subscriber premises) and large scale deployment to customers is foreseen [29]. On 26 June 2008, Maxime Lombardini and the mayor inaugurated Free's FTTH network achieved in a district of Montpellier [25].
On March 2008, Iliad made the commitment to cover Paris at 75% by second semester 2009 and reiterated its goal to connect 4 million French homes to its own FTTH network by 2012 [30]. Significant volumes of subscribers will be connected as soon as the legislative framework is in place [1].
The Voiceband Internet access offer counts nowadays an insignificant number of subscribers as 98% of French homes were eligible to ADSL in 2006[32].
Freebox was initially the name of the Set-top box and Modem: the Freebox device. It became afterwards also the name of the offer because of the popularity and reputation of the device.
| Included international phone calls | ||||||||
|---|---|---|---|---|---|---|---|---|
| Date | Number of destinations at no extra cost | |||||||
| Landline | Mobiles | |||||||
| July 2003 [33] | 1 (Metropolitan France, unbundled subscribers only) | 0 | ||||||
| March 2004 [34] | 1 (Metropolitan France, all subscribers since then) | 0 | ||||||
| December 2005 [35] | 15 (United Kingdom, China, Singapore, Australia...) | 2 (USA and Canada) | ||||||
| June 2006 [36] | 26 (Taiwan, Norway, Canary Islands, Jersey, Greece...) | 2 | ||||||
| January 2007 [37] | 49 (Turkey, Poland, Luxembourg, Russia, Japan...) | 2 | ||||||
| September 2007 [38] | 70 (Peru, Venezuela, South Korea, New Zealand...) | 2 | ||||||
In 2003, Free introduced unlimited phone calls at no additional price, while other phone operators or ISPs charged fees for each minute of telephone call. Competitors have then been forced to imitate these evolutions but always with fewer destinations included or with an additional price.
Up to march 2005 [34], free of charge telephone calls were limited to unbundled subscribers.
Calls to United States and Canada mobiles are free of charge since december 2005 [35].
In 2006, Free and France Télécom were in conflict against unfair increase of Neuf Cegetel own termination tariffs, aimed at undermining unlimited phone offers in France. French regulator ARCEP then decided to apply a threshold for call termination [39]. Unlimited free phone calls are perennial in France since then.
Telephone services includes a wide range of free of charge services, from Answering machine to Ringback tone customization.
According to a study published in 2008 by Light Reading [40], Free is by a very long way the biggest IPTV carrier in the World [41].
Free is the third ISP in France. The leader is Orange (former state monopoly company France Télécom) and the second one is Neuf Cegetel. Free was the second ISP up to end June 2007, when competitor Neuf Cegetel acquired Club Internet (T-Online France) 600,000 subscribers[42]. Neuf Cegetel has always had a lower organic growth than Free.
Free's subscribers growth is essentially organic, except the strategic acquisition of the Citéfibre FTTH ISP in 2006 (about 500 subscribers) [31].
| Free broadband subscribers and market share since 2002 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Year | Free Broadband subscribers | ADSL subscribers in France | Broadband subscribers in France | |||||
| Bundled | Unbundled | Total [43] | Unbundling ratio | Total [44] | Free market share | Total [44] | Free market share | |
| 2002 | 95,000 | 3,000 | 98,000 | 3.1% | 1,361,377 | 7.2% | ||
| 2003 | 320,000 | 153,000 | 473,000 | 32.4% | 2,967,434 | 15.9% | ||
| 2004 | 500,000 | 549,000 | 1,049,000 | 52.4% | 6,072,723 | 17.2% | 6,529,997 | 16.0% |
| 2005 [45] | 475,000 | 1,120,000 | 1,595,000 | 70.2% | 8,881,875 | 17,9% | 9,500,000 | 16,8% |
| 2006 [45] | 548,000 | 1,730,000 | 2,278,000 | 75.9% | 12,019,000 | 19.0% | 12,700,000 | 17.9% |
| 2007 [29] | 537,000 | 2,367,000 | 2,904,000 | 81.5% | 14,741,000 | 19.7% | 15,550,000 | 18.7% |
Free claims to be the first profitable ISP in France [3] and to have the lowest subscriber acquisition cost amongst French operators[45].
The unbundling ratio is one of the key strategic figures:
Because of bandwidth cost, only a subset of the TV services is offered to bundled subscribers; while unbundled subscribers can access value-added services such as VOD and Subscription VOD. Revenues of those services are constantly increasing [46] [1].
In 2007, Free had the greatest EBITDA margin of the sector in Europe; was the only actor to gain market share in France and had a debt ratio 10 times lower than the industry average. Thanks to these assets, the initial FTTH deployment (targeted at 2012) will be entirely self-financed by existing activities [30].
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