Wednesday , June 16 2021

Free's strategy worries investors and consumers

Despite the release of Freebox Delta, the course of Iliad, the parent of Free, continues to fall on the stock market.

Barometer does not look good for Free. At the end of a difficult year 2018, when the operator lost the land in both fixed and mobile competition, the operator expected many of his new high class to fix his image and go to conquer the market. Alas, despite the undisputable technical qualities of Freebox Delta, it seems that success is not really at the meeting, which worries both investors and consumers,

As we have already reported, the launch of the new box did not go smoothly, The Delta Freebox not only arrived very late – it was only launched on December 4, after long waiting times – but also caused confusion and disappointment. customers.

First, because the proposal has been difficult to decipher between the mandatory purchase of the Player module and the various options imposed from the outset, A complexity that has increased only with Free's reversal, which has "severed" some of the services from the original package – such as the security package offered by the option – to cancel some of the costs considered abusive and even compose urgency, relieved with a server without a media player. What we should lose from newcomers and new subscribers, so we hoped. but even geeks who are most loyal to Free from the outset, do not hide their anger in social networks faced with this new "all inclusive"with features and services they do not need, and especially at an increasing pace, with charges that are hard to justify, as Ufo-Que Choisir has indicated.

Second, because customers who were tempted by the Delta Freebox did not all have what they expected. Between delivery delays for old subscribers serviced after the new ones, and the various bugs on the box (play the player box, 4G / ADSL aggregation does not work, remote control lock, etc.) Delta Freebox has not kept all your promisesLast worry: The ultra-high-speed fiber optic link (10 Gbps) offered by Free is not available anywhere, unlike advertisements … Of course, like many innovative products, the new generation of Freebox youth issues. The problem is that she accumulates them.

It is difficult to measure the commercial success of Delta's Freebox, the operator does not issue a number on this issue. But to believe in the race, it seems that there was no mass movement to the Free After the first days after the announcement. The same goes for the mobile sector where, despite the promises of Xavier Niel, the founder of Free, there has not been a revolutionary offer in recent weeksWorse yet, the operator has reformulated a temporary formula to make it a strange preferential package for a year. Do not be afraid of competition, especially SFR and Bouygues Telecom, which multiply cheap offers guaranteed for life through Red and B & You.

It will probably be necessary to wait for the annual results of Iliad, the parent company of Free, in Marchif these new offers have lifted the bar. That's for sure it seems that investors do not adhere to the new strategy of the group, it's obvious the share price of the Iliada share, which after slightly improving the outcome of the Freebox Delta, continues to dive to its lowest level since 2012, These days turn to 91 euros, against almost 131 euros in the middle of December 2018, away from the tops to 247 euros, observed several times between 2012 and 2017 … It is clear that The market is worried and seems to have lost confidence in Free, What Risks ask the operator for some problems after a few months when you will need to participate in a 5G auction which will require very large investments. In short, the sky is rather dark in Free at the moment, in the spirit of the graphic code used in the communication and advertising of Freebox Delta …

Illustration: © Free

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