Tuesday, November 22, 2016

Cdiscount wants to challenge Free mobile – The Echoes

The bet is daring, but Cdiscount believes in it. The e-commerce site of the Casino group, which is seeking to diversify on all fronts, lance, for the first time, a tender for mobile telephony. To try to impose itself on the highly competitive market of telecoms in France and it difficult for alternative operators, Cdiscount adopts the “Free method” with a price very aggressive at at € 2 per month.

so far the only Free offered this price level. If it aligns on the cheapest offer in the market, Cdiscount offers however, are not the same thing. After you have acquired a SIM card for 5 euros, the customer has the right to 3h 20min of calls, compared to 2 hours at Free and 200 Megabyte (Mb) of internet, compared to 50 Mb for Free. Most importantly, the real difference is that SMS and MMS are limited to 200 at Cdiscount, whereas they are unlimited in Free, as, indeed, in most of the offers of the operators today.

The unlimited SMS, pay

Cdiscount has decided to pay € 7, unlimited SMS, and 7 additional euros, unlimited calls. That was 16 euros per month, such an offer (which includes 5 Gb of internet) remains, however, less expensive than, that, almost similar in most of the large operators Free, Sosh (Orange), B&You (Bouygues Telecom) or Red (SFR). It does not include calls abroad, such as the fact Free.

” It was a bid surprising, very simple and quickly remembered, ” says Morald Chibout, director general of Cnova, the e-commerce subsidiary of the Casino group. To make a difference in the telecom sector, it should also make noise. But Cdiscount does not have the means to pay for large communication campaigns to several million euros. It has, therefore, to use its own sales force, and capitalize on its reputation of well-known brand to sell cheaper products than its competitors.

” It sells 1 million mobile phones per year, on our site Cdiscount. We are going to push the offer of mobile telephony to each customer who buys, ” says Emmanuel Grenier, CEO of Cnova. The mobile offer is only available on the website Cdiscount, to its 8 million customers and 11 million unique visitors per month. But it is not excluded that one finds in the stores, Casino, a day.

The “discounter” is, in effect, a market of 34 million people who selected a plan with no commitment and the 11 million who have opted for a prepaid offer. “Cdiscount affects all CSP+ very balanced way, contrary to what you think,” says Morald Chibout.

A real bet

The foray into mobile telephony is a new diversification to Cnova. The publicly traded company, has doubled its loss in a year, in the third quarter to 74.5 million euros, for a turnover of 414,1 million. Today, its future is reflection, and it could be split in three entities (France, Brazil, Colombia).

The success of Cdiscount in the telecom sector is not acquired, so that the mvnos (MVNOS) are struggling to impose itself on the market dominated by Orange, SFR, Free and Bouygues Telecom. As NRJ Mobile or CIC Mobile, as MVNO Cdiscount buy minutes of voice and “data” from network operators.

For the technical service, he has appealed to Euro Information Telecom. The client Cdiscount will be on the network of SFR. But, if they can’t, they can ask to switch from Orange or Bouygues Telecom. It is the first MVNO in Europe to have the ability to juggle with multiple networks, the other only a single.

” each time we went into a new market, whether it is the appliances, the relay points… We went there in break, ” says Emmanuel Grenier. In October, amazon, Cdiscount, has launched a offers movies, music and books to 9.99 euros per month. The group ensures that it ” works well “, but did not, however, give the proof by the numbers.


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