French mobile revenues drop 3.1% in Q1

French mobile operators’ service revenues amounted to EUR 5.62 billion in the first quarter of 2012, a 3.1 percent drop from the year-earlier period and 0.8 percent lower on a quarterly basis, according to Telecompaper’s latest report on the French mobile industry. The annual and quarterly declines were due to cuts in termination rates and intensified competition after the launch of Free Mobile in January 2012. All the three established operators lost revenues on an annual and quarterly basis, with SFR suffering the biggest losses. 

The number of mobile SIMs (excluding MVNOs) increased annually by 3.0 percent to a total 60.9 million lines at the end of March 2012, taking market penetration to 95.9 percent of the population. Orange remains market leader with a 43.5 percent share of customers (excluding MVNOs). SFR was in second place with 34.3 percent, followed by Bouygues Telecom. Newcomer Free Mobile took a 4.3 percent share of the market in its first quarter. 

Telecompaper forecasts French mobile services revenue will decline by 4 percent in 2012 to a total turnover of EUR 22.2 billion. Lower roaming and MTA prices will continue to put pressure on revenues (in particular voice revenues), and the price war which followed Free Mobile’s launch is not expected to subside during 2012.