REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

6. OVERVIEW OF THE GROUP’S BUSINESS
6.2 PRINCIPAL MARKETS
6.2.1.3 Players in the Internet access market in France
In France, as in the rest of Europe, the Internet service provider market has matured after several years marked
by a proliferation of access providers. Incumbent operators have made up for initial lost ground and have
reestablished their positioning in their domestic markets. At the same time, a wave of consolidation and
concentration has reduced the overall number of players in the market.
The Group’s main competitors in the French Internet access market are:
• international Internet service providers, some of which are partnered with telecommunications operators,
such as Orange, Neuf (including Cégétel, AOL and Club-Internet), and Télécom Italia (Alice). Market
consolidation resulted in the disappearance of AOL and TELE2;
• cable network operators (Noos/Numéricable);
• independent local access providers; and
• companies offering Internet access as a means of winning customers for their services, such as banks and
mass-marketing companies.
Market share of leading ISPs in the ADSL sector (December 31, 2006)
Neuf Cegetel
18,1%
Alice
6,4%
Free
19,0%
Club Internet
5,2%
Others
1,9%
Orange
49,4%
Market share of leading ISPs in the ADSL sector (December 31, 2007)
Neuf
21,9%
Free
19,7%
Others
9%
Orange
49,4%
The launch of so-called “free” Internet in France was the driving force behind the growth of the residential
market, and Free rapidly positioned itself as a leading player in this sector. With the introduction of fixed-rate
inclusive packages at the end of 1999, this type of service became increasingly popular and established itself as
the core of the dial-up Internet sector. Today, “pay-as-you-go” or “free” services are showing a slight decline, as
are subscription-based services.
40 - Iliad – Registration Document 2007