Iliad’s Free brand boosts LTE data bucket from 20 GB to 50 GB
Having backed away from an attempted entry into the U.S. market through an acquisition of T-Mobile US, France’s Iliad is looking to continue pressuring operators in its home country with a new rate plan that promises 50 gigabytes of LTE data.
Iliad’s Free brand bolstered the amount of LTE-based data included in its “Free Mobile Plan” from 20 GB per month to 50 GB per month at the same 20 euro ($22.50) price unbundled or 16 euros ($18) for Freebox customers. The carrier said it will reduce data speeds once customers exceed the 50 GB limit.
Analysts have noted the vast cost savings telecom operators should be able to reap from transmitting data over their LTE networks compared with legacy 3G systems, which also has pushed some operators to begin rolling out voice-over-LTE services that transmit voice traffic over the LTE network.
Free claims its LTE network currently covers more than 50% of the French population, with plans to hit 60% coverage by year-end. The new offer is only applicable to phone use and usage on its 3G network is limited to 3 GB per month.
The Free rate plan also includes unlimited calling and messaging within France, unlimited calls to landline phones in 100 foreign countries, and unlimited text messaging from Europe and French overseas departments.
Iliad has reportedly entered into discussions with rival Numericable-SFR regarding the possible purchase of assets tied to a potential offer by Numericable-SFR to acquire fellow operator Bouygues Telecom for approximately $11.4 billion in cash. That deal would create France’s largest mobile telephony operator and reduce the local market to a three-player scenario along with Orange.
Iliad last October put to rest its attempt to acquire a stake in T-Mobile US, citing a lack of interest from T-Mobile US parent company Deutsche Telekom. Iliad said the move followed “exchanges” with DT and “selected” T-Mobile US board members “who have refused to entertain” Iliad’s offer. Iliad’s initial offer included plans to purchase a 56.6% stake in T-Mobile US for a reported $15 billion. DT shot down the offer, which was set at $33 per share, noting later that it was looking at a minimum of $35 per share for a stake in T-Mobile US. At the time of its initial offer, Iliad was offering a 42% premium over T-Mobile US’ trading price. T-Mobile US’ stock was trading down just over 2% on Monday at around $27 per share.
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