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Introduction to Free

Introduction to Free. Created in April 1999 2 nd Internet Service Provider (ISP) in France Belongs to the group Iliad Since January 2001, Free developped his own modem : The Freebox 1st multiplex box which can offer : High flow Internet

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Introduction to Free

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  1. Introduction to Free • Created in April 1999 • 2nd Internet Service Provider (ISP) in France • Belongs to the group Iliad • Since January 2001, Free developped his own modem : The Freebox • 1st multiplex box which can offer : • High flow Internet • Unlimited telephony on French phone calls • HD television

  2. Introduction to Free • Free employes the France Telecom network : • Reduced price : • Free low flow Internet service • 50h low flow Internet at 14,99 E per month • Unlimited high flow Internet at 29,99 € per month • The strength of Free is based on simplicity : • One price, one offer, one technology • 2006 turnover : 950ME • Manpower : 560 employees with 460 dedicated to the hotline.

  3. Introduction to Free • 10/2002Unlimited high flow internet access up to 512K – first triple play modem (Freebox) • 07/2003Unlimited phone calls in France • 11/2003Television by ADSL • 06/2004High flow access up to 5 Mbit/s • 07/2004Wifi functions • 10/2004ADSL2+ • 01/2005High flow access up to20 Mbit/s • 04/2005ADSL access without phone subscription • 06/2005Médiacenter (Freeplayer) - Son Dolby 5.1 - READSL • 09/2005Immediate TV audience Measure • 11/2005High flow access up to24 Mbit/s • 12/2005Unlimited phone calls to 14 foreign countries • 04/2006Freebox HD, TNT tuner, WiFi-mimo, Wifi mobile phone • 06/2006Adding 13 other countries for unlimited phone calls • 07/2006High flow access up to28 Mbit/s • 08/2006Activation of digital videorecorder Technologic innovations on : Internet, television and telephony

  4. FREEBOX 3 in one Strategic business units • Internet • Television • Phone calls • Mobile phone

  5. Mission and objectives of Free • To provide an internet service and an integral offer to people based on its own network and with equipment from its own conception • Free wants to stay the 2nd Internet Service Provider in France • Overcome 2,8M Internet ADSL subscribers by the end of 2007 • Concerning the FTTH (optic fiber), the objective is to cover 4 million households by 2012 (including Paris + suburbs and selected cities) with a minimum of 15% market share of landlines.

  6. PESTEL • Technological : • ADSL/Wifi technologies • Control of technologies and innovation capacities • Use the Internet for a lot of multimedia activities • 2 future technologies

  7. PESTEL • Economical : • Computers much cheaper • More and more houses are equipped • 9 million of Internet subscribers • Legal : • Law modifications on networks in the last few years. • France Telecom must rent its network to others Internet service provider. • France Telecom can’t use its position of leader to sell cheaper Internet service.

  8. 5P+1 - PORTER • Suppliers - 6/10 • The main network is owned by France Telecom • A lot of hardware provider • Buyers - 8/10 • Very strong customers, helped by consumer associations, sharing opinions ; • 12 or 24 months subscription but can be canceled by paying

  9. PORTER • New participants - 2/10 • Not currently a strong threat, • The ARCEP is a barrier to entrance • Substitutes - 3/10 • They are very rare as communication support • The cable could be a substitute but is not adapted

  10. PORTER • Competitors - 8/10 • They are quite strong, • They are : France Telecom (half the market), Neuf Cegetel (just under Free), AOL (decreasing)… • Competition on the price but also on the services offered • State - 2/10 • With the ART and the ARCEP is a support for Free by forbidding lower prices

  11. PORTER diagram Buyers Suppliers New participants State Substitutes Competitors

  12. CSFs + +++ +++ ++ + ++ • Advertisement • Capital / cash flow • Technological innovations • Development of its own network • Relation with the customers • Simplicity of the offers

  13. SWOT • Strengths • Communication • Financial resources • Technological resources • Human resources • Physical resources • Good notoriety • Capacity to innovate • Fast decision process • Cheap and efficient communication • Weaknesses • Hotline and support • Freebox setup

  14. SWOT • Opportunities • Team specialized in ADSL technologies. • Local communities • ARCEP • A booming potential • Threats • Not everybody can access to ADSL • Imitations • Regulation standards • Consumer associations

  15. Diagnostic • Price : Free is well placed because low and constant, • The technical innovations are the best on the market with a constant price, • Free must improve its technical assistance and customer support, • If the number of new subscribers decreases, they might increase advertisement, • Develop the Wimax access (wireless access with long range) in order to increase the number of potential buyers.

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