By Inti Landauro
PARIS--The telecom unit of French conglomerate Bouygues (EN.FR)
Monday said it will offer the 4G service to all its subscribers for
free in reaction to a similar announcement made by rival Iliad SA
(ILD.FR), a first sign competition risks are preventing telecom
operators from boosting cash from faster data services.
Like Iliad, Bouygues will offer the latest fourth-generation, or
4G, high speed mobile internet connection to all its subscribers
automatically. Additionally, the company won't adjust its prices in
line with the sales-tax increase imposed by the government starting
on Jan. 1.
The Bouygues move adds to pressure on other French telecom
operators Orange SA (OR.FR) and Vivendi SA's (VIV.FR) SFR to follow
suit to prevent customers from migrating to Iliad or, now, to
Bouygues.
Since Iliad launched its low-cost mobile service dubbed "Free"
almost two years ago, setting off a price war, the other operators
have seen margins and profits shrink. They all invested heavily in
4G networks, under the assumption the new service would allow them
to raise their prices and increase revenue per user.
Write to Inti Landauro at inti.Landauro@wsj.com
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