By akademiotoelektronik, 12/09/2022

End of commitment to Orange and SFR, what future for their low-cost subsidiaries?

Les chiffres de l’ARCEP (le gendarme des télécoms français) parlent d’eux-mêmes : les mobinautes de l’hexagone plébiscitent les forfaits sans engagement à plus de 78 %.This figure earns an additional 1% every year.To capture these subscribers who cherish their freedom, the three major historical operators have created low -cost subsidiaries, without shops, whose support and management only exist online. Elles se nomment Sosh pour Orange, RED pour SFR et B&You pour Bouygues Telecom.The latter has not announced anything for the moment, but it would be curious that he does not also follow the movement with his packages.If Orange and SFR go to the without obligation what advantages do they leave in low-cost?

No or little drop in prices at Orange

The renunciation of the sacrosanct commitment system is also used to simplify their different formulas.Market leader, Orange therefore offers flexibility to its subscribers but without lower price on its main packages.4G offers: 2 hours of calls - 100 MB, 2 hours of calls - 20 GB and 10 GB with unlimited calls remain with the same promotions the first 12 months then increase for the second year.They cost € 2.99 respectively then € 7.99, € 13.99 then € 18.99, and € 21.99 then € 26.99.The 4G plan to 70 GB sees its price drop, it is now displayed at € 14.99 then € 29.99.At the operator, the transition to without commitment also affects 5G formulas (absent at Sosh confined to 4G).They include a 120 GB package at € 20.99 the first year then € 32.99, 130 GB at € 29.99 then € 44.99 and finally, 200 GB at € 49.99 then € 64.99.Data envelopes are more generous at slightly lower prices.

Les forfaits d'Orange en détail >

With SFR, it's much more expensive!

For its part, SFR offers several 4G+ packages by aligning a little on orange prices.Thus the offer with 2 hours of calls and 100 MB is billed 3 euros the first year then goes to 8 €/month.The two formulas with unlimited calls, one with 5 GB and the other with 80 GB cost, respectively 12 € the first 12 months then 17 € and 15 € then 30 €.Four 5g unlimited calls complete the brand's catalog with red square.With 90 GB of data, the bill amounts to € 20 in the first year then goes to € 32, the one with 120 GB goes from € 29 after 12 months to 44 €/month, for 160 GB the promotional price of 49€ goes to 64 €.Finally, SFR markets a “all unlimited” formula tariffed € 60 in the first year then 75 €.

All these offers are of course sold without mobile.In the case of the need (or desire) of a preferential price smartphone, the two operators force you to commit: generally 12 months at Orange and 24 at SFR.

Les forfaits de SFR en détail >

Are low-cost always advantageous?

At Sosh, the orange subsidiary, we access four offers that range from 100 MB for € 4.99 to € 80 GB to € 14.99, including 60 GB to € 13.99 and 70 GB at € 24.99.Indeed, offers at € 14.99 and € 13.99 will end on January 31, 2021.We deplore the total absence of 5G package.

Les forfaits de Sosh en détail >

At Red, SFR subsidy, there are 4G packages from € 5 per month for 5 GB which go up to 130 GB for € 19.Intermediate data volumes exist with 30 GB for 10 €, 70 GB for 13 € and finally, 100 GB at 15 €.A single 5G formula is catalog: 130 GB at a price of € 24.

Les forfaits de RED en détail >

B&You, dérivée de Bouygues Telecom, offre des forfaits mobiles 4G sans engagement de 100 Mo à 130 Go à des tarifs alignés sur ceux de ses concurrents, en particulier RED.The operator also has a 5G formula which grants an envelope of 130 GB for 24.99 €.

Les forfaits de B&You en détail >

The risk of cannibalization

This strong paradigm change: the abandonment of commitment by the two major historical operators could prove dangerous for their low-cost subsidiaries. En proposant peu ou prou les mêmes forfaits et avec la mise en avant de cette flexibilité, ils chassent sur les mêmes terres.The risk of "cannibalization" of one brand by another, which belong to the same parent company can be real.Laetitia Orsini Sharps, Director of Orange multiservice offers explained to our 20 -minute colleagues this reversal concerning engagement and exposes its strategy in detail: "These were historic codes on the low cost market.We decided to break them.»».She continues: "Sosh aims to address more independent, more independent customers, who know exactly what they want, without advice or support.These are prices that remain very attractive and without mobile ”.

Aware of the volatility of French mobile users, especially the youngest, Orange therefore decided not to retain them by a form of constraint.But, the operator has retained the practice which consists in increasing the price of the monthly subscription, once the first twelve months have been due.Indeed, official shops, sales advisers, the various commercial provisions and telephone support induce costs that the low-cost subsidiaries do not bear.An element that constitutes one of their forces.

Low-Cost score points

Low -cost subsidiaries have the favor of French mobile users because they have several advantages.If the lack of commitment has counted as their first success factor, other elements are taken into account. D’une part, elles bénéficient d’un réseau et d’une infrastructure fiables.Thus, Sosh subscribers can count on the dense network provided by Orange, as are RED customers thanks to SFR's work, in particular on the deployment of 5G. D’autre part, les filiales low-cost proposent des tarifs intéressants, mais avant tout pérennes : pas de majoration au bout des douze premiers mois. De plus, leur tarification et leurs offres se montrent explicites et claires.Historical operators sometimes multiply the formulas with options, special discounts and other supplements which, very often, make contracts incomprehensible.With the development of digital access and training for seniors, the fact that the subscription and management of the package take place online or via a mobile application no longer constitutes a handicap.This "all digital" allows time to save, reactivity in the event of a concern, all associated with the usual profits of digital (from home, regardless of day and time).

Le seul petit bémol concerne la 5G présente chez RED et B&You avec un seul forfait.The deployment of this technology continues and compatible mobiles are slowly starting to democratize.In short, unless you are a fanatic "early adopter", it is better to wait for correct coverage of the territory before switching. En définitive, les opérateurs historiques abandonnent l’engagement, un geste fort, mais dont la portée se révèle plus symbolique qu’autre chose.Low-Cost still have a bright future ahead of them.

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