John Wayne comes 230Xavi is riding to the rescue after Free lost 19,000 broadband subscribers in Q1, an almost inconceivable result after 16 years of success. He's bringing back some of the original team, including legendary engineer Rani Assaf. They have work to do: opening Italy & Ireland, transitioning from 4G to ?, and dealing with invigorated competitors. Even Bouygues seems to be coming back. 

Orange/France Telecom now has a better network and is promoting aggressively. FT offers fiber to 9.6M homes, Free only to 6.8M.  FT has 97% 4G coverage, Free only 88%. The stock price has seriously fallen while Xavi invested in 400 startups, built the school 42, and created Station F, the world's largest startup incubator.

One of the first things Niel intends to do is to rev up the fiber build. He expects to add 2M servable homes by the end of this year and enable 20M - 80% of the country - by 2022. The business strategy will be to sell hard in the fiber areas, looking to add 500,000 or more each year.

While the companies have separate builds in the major cities, they share the deployments in other areas. In the more rural areas, government either takes a direct role or provides a subsidy. Free has negotiated deals with Axione & Orange, with others on the way.

French fiber 650

Free became the most successful new carrier in the Western World early this century by offering extraordinary value - the 30 Euro triple play. Xavi disdained marketing - he gave the customers much more at an extraordinary price and found millions of customers.

He could do that because Free was probably the most efficient network in the world. He went all IP in 2002 and proved that the simpler network cost less to run. No one offered IP DSLAMs so they designed their own. No home gateways were designed for a rich video triple-play, so they created the Freebox. They did software defined networking before anyone even coined the phrase.

They were years ahead. Companies like Verizon and Deutsche Telekom are still saddled with legacy systems 15 years later. Orange bled for years, but now they've learned their lesson. There's a new Freebox about to deploy, but the competition is much closer today. 

Free in turn is learning from Orange. They are going to feature sales and special offers; loyalty programs; and fight hard to retain customers. 

Henry Ford's Model T was a great car for the day at an unprecedented price. Especially if you wanted black. But a decade later, Alfred Sloan and Charlie Kettering at General Motors  became fierce competitors. Kettering was an engineering genius who made a fine product. Sloan was one of history's best marketing men. 

Ford came back and so will Free.

Here's the pr 

A new organization to deploy a new commercial approach

  • FTTH: Faster pace connections with 90,000 new subscribers in the quarter

  • Mobile: 130 000 new subscribers recruited in the quarter - and nearly 250,000 additional subscribers on Free Package Unlimited 4G (100GB for non Freebox subscribers)


  • Group turnover up 0.8% to over 1.2 billion euros, in a very competitive business environment

  • Up more than 7% of revenues Mobile services (excluding incoming SMS and voice), driven by the favorable mix of subscribers

  • Deploying a new commercial approach in the coming weeks in order to revitalize the Group's growth and accelerate the deployment of the Group towards the Almighty fixed and mobile broadband

  • Italy: Commercial launch imminent!

The accounting standard IFRS 15 on "Revenue from contracts with customers" is applicable since 1 January 2018. Iliad and communicate sales activities in Q1 2018 under this new standard.


The results for the 1st quarter was below expectations, both in terms of recruitment and in terms of business, the Group is developing its business approach to revitalize the Group's growth and accelerate the deployment to the Most Top fixed and mobile broadband in the next few quarters.

This new approach is based on:

  • A more appropriate promotional policy - Example of the promotional offer Free Very launched in late March;
  • Deploying an active policy loyalty and retention;
  • A stronger segmentation of distribution channels;
  • The continuation of the Group's commitment in accelerating Very High Throughput fixed and mobile, with the following goals:
    • mobile:
      • Accelerate the migration of subscribers to the 2 Euros / month (0 euro for Freebox subscribers) to Package Free unlimited 4G (100GB for non Freebox subscribers).
    • FTTH:
      • increase the number of FTTH subscribers from 300 000 to 500 000 subscribers in 2018;
      • increase the number of FTTH subscribers of about 500 000 subscribers per year from 2019;
      • reach 1 million FTTH early 2019.
  • The launch of new offers in the coming weeks in order to boost recruitment and increase ARPU term;
  • The repositioning of innovation at the heart of our strategy with the launch of new boxes by 4 months.


operational indicators

Subscribers (in thousands)

31 March-18

31 dec-17

31 March-17


Total mobile subscribers




  • including 4G





Total subscribers High Flow and High Speed Broadband




  • including FTTH





Total number of subscribers





other indicators

31 March-18

31 dec-17

31 March-17


Broadband ARPU and Very High Speed (in €)

32.90 **



ARPU Freebox Revolution * (in €)

> 38.00

> 38.00

> 38.00


Connectable taken FTTH




Consumption average 4G (in GB / month / subscriber)

9.2 GB

8.4 GB

6.0 GB


* Offline promotions

** 32.40 euros by including adjustments related to the new accounting standard IFRS 15


Given the new IFRS 15 took effect in 2018, the Group's sales of totaled 1,201 million euros in the 1 st quarter of 2018, up 0.8%. Gross fixed business was down 1.6% to 672 million euros, while the figure for mobile business increased by 3.9% to 531 million euros.

The following table shows the revenue distribution of revenues by type Group March 31, 2018 and March 31, 2017, with and without the impact of IFRS 15:



Excluding IFRS 15

In millions of euros

T1 2018

T1 2017

Variation (%)

T1 2018

T1 2017

Variation (%)







































Group Sales

1 200.9

1 191.4


1 229.3

1 223.9



In a highly promotional market, the Group recorded a 1.6% decline in its fixed revenue compared to Q1 2017. It is 672 s one milli euros at 31 March 2018. The main developments during the quarter were as follows :

  • Decline in fixed revenues due to (i) the strong competition on the market, (ii) the slight decrease in the subscriber base, (iii) the impact of promotions, as well as (iv) negative impact of VAT on audiovisual offers. In a competitive and highly promotional environment, the Group remains by far the leading alternative broadband and very high speed, with over 6.5 million subscribers and a 24% share of market, despite a park and Very High Speed Broadband down slightly (19 000 subscribers) in the quarter;
  • Broadband ARPU and Very High Speed amounted to 32.90 euros at the end of March 2018, impacted by the negative effect of the VAT increase on audiovisual offers and promotions. The Freebox Revolution offer still records a higher ARPU to 38 euros [1] .


During the 1st quarter 2018, the Group strengthened its positioning solid challenger to the incumbent on the FTTH, continuing accelerating the transition of ADSL to FTTH with :

  • Maintaining a high rate of deployment of new connectable taken. With 400,000 new takes deployed on the quarter, the Group now has 6.8 million connectable taken FTTH;
  • The acceleration of FTTH connections, with a subscriber base increased by 90,000 subscribers in the quarter. Thus, the Group now has nearly 650,000 FTTH subscribers, nearly 280,000 subscribers to more than a year ago.





T Mobile revenue grew by 3.9% (and more than 7% of service revenues Mobile out incoming SMS and voice), to 531 milli it s euros. The main developments during the quarter were as follows:

  • Maintaining a good net recruitment level, with 130 000 new subscribers on the Group's mobile offerings. Evolution of the mix of subscribers, with nearly 250 000 new subscribers on Free Package Unlimited 4G (100GB for non Freebox subscribers) in the first quarter of 2018, taking advantage of (i) the increase in traffic carried in clean, (ii) the strategy of enriching rates and (iii) occasional promotional sales. Thus, the Group now has 13.8 million mobile subscribers, representing a market share of over 19% [2] ;
  • Improved subscriber mix: the decline continued subscriber base to 2 euros / month (0 euro for Freebox subscribers) in favor of the subscriber base in the package Free unlimited 4G (100GB for non Freebox subscribers);
  • Up more than 7% of revenues Mobile services (excluding incoming SMS and voice). The mobile revenues (services and terminals), progresses to its share by 3.9% mainly due to the negative impact related to entering the decrease in the use of SMS for the benefit of the increase in the use of mobile data;
  • Continued success of 4G, with a base of 8.3 million 4G subscribers, an increase of 100,000 4G subscribers in the quarter. 4G consumption recorded an increase of nearly 10% over the quarter, with an average monthly usage per subscriber 4G 9.2 GB. The quality of the experience offered by 4G Free Mobile is once again demonstrated by the nPerf barometer mobile connections, with an average downflow 4G almost 40 Mb / s;
  • Continued deployment of 4G frequencies with 835 newly equipped with 1800 MHz sites and over 300 700 MHz, according to the progressive opening of permissions in new areas. The Group now covers 94.5% of the population in 3G and 4G 88%.



  • fixed:
    • Market share of broadband and very high speed of 25% in the long term;
    • Increase the basis of FTTH subscribers from 300 000 to 500 000 subscribers in 2018 and around 500 000 subscribers per year from 2019;
    • Reach 1 million FTTH early 2019;
    • 9 million connectable taken FTTH end of 2018 and 20 million FTTH connectable taken in late 2022. 
  • mobile:
    • Opening of about 2 000 new sites on the year 2018, with coverage 4G close to 90% 3G coverage of 95%;
    • Mobile market share of 25% in the long term;
    • Finalization of the migration of 4G sites in 1800 MHz current 2018. 
  • group:
    • Margin of Ebitda France increased in 2018;
    • Ambition to achieve a margin of EBITDA for the Group in France over 40% in 2020;
    • Level of investment in 2018 (excluding frequencies but incorporating the launch of new boxes) in France at about 1.55 billion;
    • A balance of EBITDA -investments France over 1 billion euros from 2020 through:
      • Lower costs related to roaming contract;
      • Improving the mix of mobile subscribers;
      • A national mobile network in 2020.
    • Achieving a balance in terms of Ebitda in Italy with less than 10% market share.