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Introduction to Free

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Introduction to Free. Created in April 1999 2 nd Internet Service Provider (ISP) in France Belongs to the group Iliad Since January 2001, Free developped his own modem : The Freebox 1st multiplex box which can offer : High flow Internet

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slide1
Introduction to Free
  • Created in April 1999
  • 2nd Internet Service Provider (ISP) in France
  • Belongs to the group Iliad
  • Since January 2001, Free developped his own modem : The Freebox
  • 1st multiplex box which can offer :
    • High flow Internet
    • Unlimited telephony on French phone calls
    • HD television
slide2
Introduction to Free
  • Free employes the France Telecom network :
    • Reduced price :
      • Free low flow Internet service
      • 50h low flow Internet at 14,99 E per month
      • Unlimited high flow Internet at 29,99 € per month
  • The strength of Free is based on simplicity :
    • One price, one offer, one technology
  • 2006 turnover : 950ME
  • Manpower : 560 employees with 460 dedicated to the hotline.
slide3
Introduction to Free
  • 10/2002Unlimited high flow internet access up to 512K – first triple play modem (Freebox)
  • 07/2003Unlimited phone calls in France
  • 11/2003Television by ADSL
  • 06/2004High flow access up to 5 Mbit/s
  • 07/2004Wifi functions
  • 10/2004ADSL2+
  • 01/2005High flow access up to20 Mbit/s
  • 04/2005ADSL access without phone subscription
  • 06/2005Médiacenter (Freeplayer) - Son Dolby 5.1 - READSL
  • 09/2005Immediate TV audience Measure
  • 11/2005High flow access up to24 Mbit/s
  • 12/2005Unlimited phone calls to 14 foreign countries
  • 04/2006Freebox HD, TNT tuner, WiFi-mimo, Wifi mobile phone
  • 06/2006Adding 13 other countries for unlimited phone calls
  • 07/2006High flow access up to28 Mbit/s
  • 08/2006Activation of digital videorecorder

Technologic innovations on :

Internet, television and telephony

slide4
FREEBOX

3 in one

Strategic business units

  • Internet
  • Television
  • Phone calls
  • Mobile phone
slide5
Mission and objectives of Free
  • To provide an internet service and an integral offer to people based on its own network and with equipment from its own conception
  • Free wants to stay the 2nd Internet Service Provider in France
  • Overcome 2,8M Internet ADSL subscribers by the end of 2007
  • Concerning the FTTH (optic fiber), the objective is to cover 4 million households by 2012 (including Paris + suburbs and selected cities) with a minimum of 15% market share of landlines.
slide6
PESTEL
  • Technological :
    • ADSL/Wifi technologies
    • Control of technologies and innovation capacities
    • Use the Internet for a lot of multimedia activities
    • 2 future technologies
slide7
PESTEL
  • Economical :
    • Computers much cheaper
    • More and more houses are equipped
    • 9 million of Internet subscribers
  • Legal :
    • Law modifications on networks in the last few years.
    • France Telecom must rent its network to others Internet service provider.
    • France Telecom can’t use its position of leader to sell cheaper Internet service.
slide8
5P+1 - PORTER
  • Suppliers - 6/10
    • The main network is owned by France Telecom
    • A lot of hardware provider
  • Buyers - 8/10
    • Very strong customers, helped by consumer associations, sharing opinions ;
    • 12 or 24 months subscription but can be canceled by paying
slide9
PORTER
  • New participants - 2/10
    • Not currently a strong threat,
    • The ARCEP is a barrier to entrance
  • Substitutes - 3/10
    • They are very rare as communication support
    • The cable could be a substitute but is not adapted
slide10
PORTER
  • Competitors - 8/10
    • They are quite strong,
    • They are : France Telecom (half the market), Neuf Cegetel (just under Free), AOL (decreasing)…
    • Competition on the price but also on the services offered
  • State - 2/10
    • With the ART and the ARCEP is a support for Free by forbidding lower prices
slide11
PORTER diagram

Buyers

Suppliers

New participants

State

Substitutes

Competitors

slide12
CSFs

+

+++

+++

++

+

++

  • Advertisement
  • Capital / cash flow
  • Technological innovations
  • Development of its own network
  • Relation with the customers
  • Simplicity of the offers
slide13
SWOT
  • Strengths
    • Communication
    • Financial resources
    • Technological resources
    • Human resources
    • Physical resources
    • Good notoriety
    • Capacity to innovate
    • Fast decision process
    • Cheap and efficient communication
  • Weaknesses
    • Hotline and support
    • Freebox setup
slide14
SWOT
  • Opportunities
    • Team specialized in ADSL technologies.
    • Local communities
    • ARCEP
    • A booming potential
  • Threats
    • Not everybody can access to ADSL
    • Imitations
    • Regulation standards
    • Consumer associations
slide15
Diagnostic
  • Price : Free is well placed because low and constant,
  • The technical innovations are the best on the market with a constant price,
  • Free must improve its technical assistance and customer support,
  • If the number of new subscribers decreases, they might increase advertisement,
  • Develop the Wimax access (wireless access with long range) in order to increase the number of potential buyers.
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