Numericable Launches Social Internet package to 9.99 euros

February 9, 2010 - 12:40 am Comments Off

While the Internet has become as indispensable as water or electricity, Pierre Danon, CEO of Numericable, announced that the cable operator will introduce a social tariff, responding to the request of the Prime Minister.

LE FIGARO. – For 9.99 euros per month, which will service the right customers?

Pierre Danon. – The Prime Minister had asked the operators a triple play package of around 20 euros for the poor. Numericable goes beyond and offers 9.99 euros a month for 60 channels of television (DTT channels and a selection of foreign channels), Internet access at 2 Mbps and unlimited calls in metropolitan France.There are two requirements to be eligible for this offer: being beneficiary of the RSA or disabled adult allowance and live in housing benefit service unique digital Numericable.

Will you receive compensation from the state?

The universal service fund, managed by the Caisse des depots, should pay a subsidy of 4.21 euros per month per subscriber to Numericable. This package will therefore revert to 5.99 euros a month to subscribers, 4 euro is already included in the charges. I sent a letter yesterday with the offer to Prime Minister, Arcep and services Bercy. If they approve our offer within two months we could launch it this summer.

What advantage Numericable?

It is primarily a historical constant of the cable as being involved in social housing and community.On the other hand, Numericable, who will work with municipalities and departments on this job should be able to equip a large number of new homes. Some customers take the social tariff, but others choose our offerings more upscale. I think that with this offer we can win new customers. We are now at 25% market share on the recruitment of new Internet subscribers. This should enable us to progress further. Not to mention that in dealing with public housing offices, Numericable reduces acquisition costs and delinquency risks.

You had already launched in November offer "low cost" to 19.90 euros. What is the result?

This offer works very well. It represents approximately one third of our new subscribers. Auchan is also to engage the clutch on this niche, because there is a real logic to segment the market.They are not social but tender offers "low-cost targeted. For example, many people do not use the TV service yet they pay their standard Internet package at 30 euros a month. We must stop the dictatorship of the package at 30 euros, which was a stroke of genius Free, but has not moved for four years.

After Darty and Auchan Bouygues Telecom, will you welcome new operators on your fiber network?

We are in discussions with various partners, but he must first deal with the influx of new customers for our partners. Auchan has trained 1 200 hypermarkets in 72 vendors!

The picture improves Numericable does to customers?

Yes. Having been a champion of consumer complaints, admittedly, we're totally out of radar DGCCRF.The service was bad a year ago, we made a lot of work, it is now correct. And we will still improve.

Having renounced the 4th license, what are your plans in the mobile?

Our priority remains the fiber. On the mobile, we are virtual network operator Bouygues Telecom. We will soon launch a 3G and a key card offer prepaid. But we do not support the pedal fully, because we can not afford to spend millions of euros to acquire a subscriber base.In 2010-2011, Numericable focuses on profitable growth.

Are you still handicapped by the weight of your debt?

Having renegotiated our debt with the bankers in November, we loosened the noose and we are perfectly comfortable with our deadlines for repayment of 1.5 billion euros by 2014.

The connected TV is it a concern for you, whose job is to aggregate a bunch of strings?

It is a subject that we anticipated early 2009 with our range of interactive TV "2.0", and we continue to invest. We have discussions with several manufacturers of televisions. In April, Numericable present its first applications in the form of widgets available on the TV screen.We will launch thematic portals (youth, sports, entertainment …) which will become real media capable of guiding the client and recommend programs.

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