Free Mobile changes game in France - regulator

Free Mobile has changed the game in the French mobile sector, telecom regulator Arcep chairman Jean-Ludovic Silicani told Les Echos. Free's prices are low and its offers are simple with only two to choose from, at a time when there are around 1,000 different mobile subscriptions on offer in France. Also, Free has completely separated the price of the Sim-only service from that of the handset. Finally, customers will interact with Free Mobile only over the internet. Silicani said that Arcep realised in 2009 that something had to be done to reduce French consumer's mobile bills, which were higher than in comparable European countries. Silicani said Iliad's accounts for 2012 will tell if Free Mobile was successful or not and Arcep will see if the new operator's service quality and after sales service matches its prices. The regulator acknoweldged that existing mobile network operators will see pressure on their margins. Before acting on their threat to reduce fibre network investment, operators can first review their dividend policy, according to Silicani. MVNOs will look for niche markets and the segment will probably have to adjust to the arrival of Free Mobile, he concluded.