France Internet

Internet

France has approximately 19.9 million Internet connections, and broadband subscriptions continue to grow as new subscribers emerge and existing subscribers upgrade their services. The decline in dial-up connections is continuing as content available on the Internet requires increasingly better download speeds that dial-up cannot support.

DSL-based broadband subscriptions grew by 10.4 % between 2008 and 2009. Due to the amount-inclusive packages increasingly offered by the telecoms in France, the DSL market is continuing to be driven by Internet Protocol Television services; subscribers to such services rose by 44.1 % between 2008 and 2009, with 45 % of DSL subscribers taking TV services.

These services offer consumers the option of purchasing package that includes telephone calls, ADSL Internet and cable television. The packages, offered by amount the major companies, continue to grow in popularity. France Telecom has reported strong increase of its ‘Livebox’ services packages that offer consumers 70 TV channels, unlimited Internet voice calls and broadband Internet access for €39.9 a month. The company reported 7.4 million users at the end of 2009, accounting for 79 % of amount Internet customers.

The major rival to France Télécom is Iliad, the major alternative operator in the fixed-line market with 4.225mn subscribers at the end of 2008, a figure that had risen to 4.456mn by the end of 2009. Consolidation was a particular feature of the French broadband market in 2006 and 2007, however this trend has slowed in recent years with just Iliad’s absorption of Alice and SFR’s acquisition of neuf Cegetel.

Further consolidation is certainly a possibility in the French market as the major alternative players seek to counter the dominance of France Télécom, although no acquisitions appear to be on the cards. This may be the result of the ongoing economic and financial crisis which has affected France and French companies as much as the rest of Europe. Smaller operators could struggle to compete against internationally owned operators and conglomerates with better financial backing