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An analysis of the disruptive impact of the entry of Free Mobile into the French mobile telecommunications market

Author

Listed:
  • Michel Berne

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Pierre Vialle

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Jason Whalley

    (University of Northumbria at Newcastle [United Kingdom], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

Abstract

The issue of disruptive operators has recently gained interest among researchers and regulators. From a regulator's perspective, disruptive operators can increase competitive rivalry in markets dominated by a handful of large companies, thereby allowing consumers to obtain more benefits in terms of price and quality. Largely overlooked in this discussion has been the impact that the specific identity, complementary assets of operators, and their strategies have on the marketplace dynamics. In this paper we explore the impact that one such operator – Free Mobile – has had on the French mobile telecommunications market. Drawing on a wide range of secondary sources, our analysis finds that the entry and subsequent growth of Free Mobile has had a complex and multi-faceted impact on the market. Their growth has been at the expense of the other three mobile network operators active in the French market, while their innovative business model, which enables it to compete on the basis of low costs, has been copied by its rivals. The specific characteristics of Free Mobile and of its strategy have contributed to a significantly alteration to how competition occurs in this market. This, in turn, triggers a strong incentive for restructuring, which is actually restrained by regulatory concerns.

Suggested Citation

  • Michel Berne & Pierre Vialle & Jason Whalley, 2019. "An analysis of the disruptive impact of the entry of Free Mobile into the French mobile telecommunications market," Post-Print hal-02147914, HAL.
    • Handle: RePEc:hal:journl:hal-02147914
    DOI: 10.1016/j.telpol.2018.07.007
    Note: View the original document on HAL open archive server: https://hal.science/hal-02147914
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    References listed on IDEAS

    as
    1. de Mesnard, Louis, 2011. "More firms, more competition? The case of the fourth operator in France's mobile phone market," International Journal of Production Economics, Elsevier, vol. 130(2), pages 186-195, April.
    2. Richard Le Goff & José Alejandro Rojas, 2015. "Is the French Case Illustrating that Competing Operators and Regulatory Strategies Force Telecom Services to Become a Commodity?," Post-Print hal-01444347, HAL.
    3. Peter Curwen, 2002. "The Future of Mobile Communications," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-4039-1865-9.
    4. Oecd, 2014. "Wireless Market Structures and Network Sharing," OECD Digital Economy Papers 243, OECD Publishing.
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    Cited by:

    1. Pierre Vialle & Jason Whalley & Shengxing Yang, 2021. "Seizing opportunities for international growth - The case of Iliad and the Italian mobile telecommunications market," Post-Print hal-03549645, HAL.

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