Carphone Warehouse 2012 Annual Report Download - page 24

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Carphone Warehouse Group plc Annual Report 201220
andaims to take advantage of increasing churn within the market
to grow the postpay base further in the year ahead.
Iliad’s low‑price offers have put downward pressure on industry
ARPUs, and this is expected to continue to affect the market in the
forthcoming year. To help to mitigate the effects of this, Virgin Mobile
France has renegotiated its terms with its network partners to
achieve an earlier share of termination revenues and to reduce costs.
THE CLEAR NUMBER ONE MVNO
MARKETPLACE
COMPETITIVE LANDSCAPE
France’s mobile market is one of the largest in Western Europe,
with approximately 67m subscribers.
The French market has historically been one of the less competitive
markets in Europe, with only three network operators up until
thestart of 2012.
In order to stimulate greater competition in the French market,
theFrench government and the local telecoms regulator, ARCEP,
have encouraged the development of MVNOs. Virgin Mobile France
has been the chief beneficiary of this drive as the clear leader
intheFrench MVNO market.
ENTRy OF A FOURTH MNO
Iliad Group acquired a licence to develop its own mobile network
infrastructure in December 2009, and launched as the fourth MNO
in January 2012.
Iliad entered the market with very competitively priced SIM‑only
offers, with no subsidised handset proposition. In the first few weeks
of activity, Virgin Mobile France saw a spike in customer churn.
However, the main effect of this was in the prepay segment, which
isnot subject to any minimum commitment. With the benefit of
competitive retention offers and attractive new postpay offers,
Virgin Mobile France had resumed growth in postpay by March,
DATA
The proliferation of internet usage on smartphones and other
portable communication devices has provided an opportunity
togrow data revenues.
We anticipate continued growth in network usage, providing further
opportunities to try to monetise this activity.
QUAD‑PLAy
Quad‑play propositions which offer mobile, fixed line, broadband
andTV within one package are a significant part of the French
market with an estimated 5.5m households on such packages.
Virgin Mobile France launched its own competitively priced
quad‑play offer in the spring of 2012. While this venture is in its
infancy, itprovides another potential opportunity for the business
toincrease its reach.
VIRGIN MOBILE FRANCE