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Some telcos in France and Spain implemented this strategy to lure-in more mobile customers amidst intense competition and market saturation

Press Release
Published: 2018-06-22

In 1Q18, mobile subscriptions in the monitored European markets (i.e. Belgium, Bulgaria, Czech Republic, France, Hungary, Poland, Romania, Slovakia, Spain, Switzerland, the UK) managed to grow 1% YoY as the gains in both Spain and France offset the sustained losses in Belgium and Bulgaria. InfoCom noted that convergent services are increasingly becoming popular especially in Spain and France which resulted in mobile subscription growth. For instance, Telefonica (Spain) is aggressively promoting its quad-play offers as it implemented between 16% to 20% discounts to some of its Fusion services (i.e. Fusion Series 100 Mbps, Fusion + Leisure 100 Mbps, Fusion + Premium) while also implementing up to EUR 5 price increase in its lower-value tariffs (i.e. contract only services and FTTH/VDSL and fixed telephony offers). The said price adjustments resulted in a 10% YoY growth in Fusion subscribers - driven mainly by the growth in mobile lines which now accounts around 81% (+6 p.p. YoY) of its total mobile contract subscriber base as of end-1Q18. In France, Bouygues Telecom also markets its “Bbox + Mobile” tariff plans on a discounted price of as low as EUR 15 per month for a one-year contract – inclusive of a VDSL Internet connection, unlimited fixed line calls, and up to 50 GB of mobile data allowance. Note that the operator registered the highest subscription development among the monitored operators in France (+10% YoY), whose growth was also attributed to increased network coverage (e.g. 4G) and convergent offers. Meanwhile, the sustained decline in Belgium's and Bulgaria’s mobile subscriptions is still mainly attributed to the implementation of SIM card registration in these markets.

Published: 2018-06-22

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