Mobile Broadband Strategies

Stephane Richard, CEO of France Telecom, has said that the provider needs its LTE deployment to charge its subscribers more for high-speed services. Many operators have been struggling to combat low-cost competition.

Richard is hoping to accelerate the LTE rollout in France to get a head start on its competition according to Fierce Wireless. He also confirmed there will be a premium for the service, though a price for LTE speeds as not been determined. France Telecom will be spending €1 billion to upgrade its networks to LTE, but it will not make LTE service available to Iliad’s Free Mobile. Currently, the operator is testing its LTE network and plans to rollout to four cities by the end of the year.

Yankee Group VP of Research Declan Lonergan comments

“With regard to LTE pricing, we expect France Telecom to follow a similar path to that taken by most other European operators who have already deployed the technology. In the first year following launch LTE will certainly be positioned as a premium service, with a price tag to match. Beyond that point, prices will be adjusted until eventually there is little or no difference between charges for LTE and 3G. LTE pricing will also be influenced heavily by the competitive environment. In markets where the incumbent operators are under intense competitive pressure from a new entrant (Free Mobile, in the case of France) there is limited scope for these companies to maintain a significant premium for any of their mobile services—and that includes LTE connectivity.”