France Telecom 'Opens' the Quad Play Door with New 'Orange Open' Launch

Event Summary

August 11, 2010 – France Telecom will launch ‘Orange Open’ in France from August 19th, providing a suite of five quad play service packages bundling fixed broadband and telephony access with digital television and mobile calling. Prices on 24 month subscriptions will range from EUR 39.90/month for the entry level offer up to EUR 109.90/month for the high end option. 12 month plans will cost an extra EUR 6.00 per month, and the services require a EUR 3.00/month Livebox rental.

Quick Take

Analytical Summary

• Current Perspective: Positive on France Telecom’s launch of the ‘Open’ range of quad play offers, because it strengthens the company’s competitive positioning vis-a-vis rivals that also have proprietary fixed and wireless capabilities (currently Bouygues and SFR), as well as other large scale fixed broadband operators (e.g., Numericable and Free). The ‘Open’ suite fills a gap in France Telecom’s portfolio while also enhancing its powerhouse presence in the home services segment.

• Vendor Importance: High to France Telecom, because competitor Bouygues’ quad play capability is threatening to the incumbent, and France Telecom needed to counter this challenge with its own quad play offers. Multiplay packages spanning fixed and mobile are an established fact of life in France, and with its expansive fixed and wireless assets, it is sensible for France Telecom to leverage its incumbency in both segments to maximise cross-selling opportunities and multi-service uptake.

• Market Impact: Moderate on the French bundles and multiplay market, because France Telecom’s entry into the quad play arena is no surprise, and follows on logically from its ongoing go-to-market strategy. However, quad play competitors Bouygues and SFR will be monitoring the company’s progress in this space and adjusting their portfolios accordingly, while other large alternative operators need to find ways to compete with their own fixed and mobile multi-service propositions.

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Current Perspective

Competitive Strengths and Weaknesses

Response & Recommendations

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