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Hyper-Competitive French Telecoms Market

By 2014, more consumers in France will subscribe to a triple-play service offer -- as broadband service providers invest in fiber-optic infrastructure to stay competitive, according to the latest market study by Pyramid Research.

Pyramid offers an insightful profile of the country's converged telecommunications, media, and technology (TMT) sectors. Their report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and adoption of technologies, such as WiMax, IPTV, and VoIP.

"Pyramid forecasts that 30 percent of households in France will subscribe to a triple-play offer by the end of 2009, a number we expect to increase to almost 50 percent by 2014," says Jan ten Sythoff, EMEA Manager at Pyramid Research.

"Pyramid expects quad-play adoption to gradually increase to make up 3 percent of households by 2014," he adds.

Fixed-mobile convergence will become an increasingly important competitive focus over the next couple of years.

"On the fixed side, investments into fiber will be key to maintaining a strong position in the fixed broadband sector; the development of Fiber-to-the-Home is a key issue, and ARCEP, the regulator, is promoting cooperation in order to drive FTTH coverage," Sythoff, says.

On the mobile side, competition will increase with the launch of the fourth network, as well as increasing numbers of MVNOs. Pay-TV competition has intensified with the entry of DSL and fiber operators, as content offers and packages are a key differentiator in triple-play bundles.

"Orange has also started selling satellite TV as part of its triple-play packages, in order to provide nationwide TV coverage, not possible through its DSL network," Sythoff explains. "Cable operator Numericable is investing in fiber technology, and we therefore expect cable subscriptions to decline."

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