Free's Fibre-Inspired Acquisition of Alice<< iPhone Release 2.0 - Notes from Europe | Main | Why UK's Ebbsfleet Fibre Trial is Slow >> IanFogg | June 10, 2008, 03:01 PM Free plans to buy Telecom Italia's French ISP business, Alice. ISP markets across Europe continue to consolidate. In the past, Free has focused on organic growth rather than m&a, the main exception was the purchase of niche operator Citéfibre. Fibre is a scale business. In areas covered by fibre, Free intends to migrate all its existing DSL customers onto the new network. This saves operational costs and maximises the ability of Free to sell value adds to its customer base. Free's fibre profitabiliy depends on the percentage penetration of households, and businesses, in those areas reached by fibre. Alice is valuable to Free as it will help it gain the critical mass of customers in city areas that Free needs to achieve sufficient penetration. This purchase is about Free's fibre roll-out. It isn't, as some have written, a vanity project to regain the position as France's number two ISP. I'm sure Free will enjoy being number two, but the financial bottom line is more important. |
 Subscribe for free JupiterResearch email updates:
|