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Free Mobile, as the name suggests, is aimed at revolutionizing the mobile industry in France by offering customers free phone plans when paired with its ADSL services. If customers wish to select a phone plan on its own, they can choose to pay €2 a month for 60 minutes of voice calling and 60 SMS, or €20 a month which includes unlimited local and international calls, and unlimited data.
The French broadband communications company is able to set plans at such a low price thanks to Wi-Fi and femtocell technology. Free’s founder Xavier Niel also suggests that the telecom company can generate money through selling identity and payment services, rather than only focusing on communication services to turn a profit.
It would be interesting to see how other telecom companies react to Free’s low plans. Industry analysts Ovum predicts that although Free Mobile will initially attract a lot of new customers, is might have trouble gaining traction with customers who value broader coverage over cheaper pricing.