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Livebox case study

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In recent years, the Internet has become completely democratized. In 2005, there were 13.3 million subscribers with an increase of 11.8% in 2004 with a continuous growth. In the telecommunications sector, the Internet is the segment that offers the greatest growth prospects. In 2005, the Internet grew by 17.5%. This is partly due to the phenomenon of "unbundling". The number of unbundled lines has increased by 54.6% from April 2005 to March 2006.

This phenomenon has contributed to an increase in subscriptions, since it allows the customer to cancel his phone service and enjoy the "triple play" offer; that is to say, unlimited fixed telephony, broadband internet and television. The number of operators providing triple play offers remains limited, but that does not prevent the market from becoming hyper-competitive. We chose to study the Livebox, because it is the most expensive as well as the most requested product. This may seem a bit paradoxical since it was released right after the Freebox or Neufbox.

- The demographic environment: The aging population and the increase in number of expatriate workers result in isolation of people, which facilitates the development of technologies with respect to long-distance communication (ADSL)
- The socio-cultural environment: The development of individualism and the willingness to have everything right away is an expansion factor for broadband.
In addition, the image of serious and highly developed brand of France Telecom is establishing itself in the market.
- The economic environment: The purchasing power of consumers has been relatively stable since the early 2000s and a growing share of the household budget is now devoted to new technologies (mobile phones, computers, internet)
- The technological environment: The development of the Internet and ADSL and unlimited telephonic expansion are everywhere in the current technological environment. Finally, the unbundling of more French regions provides an extension of the offer.

The negative elements are: The aging of the population can also play against the Livebox because people over the age group of 60s are least inclined towards the Internet, unlimited telephone calls or the many TV channels. The French are anxious to have a cheap DSL connection while the Livebox is the highest offer in the market. Hence, numerous competing proposals are cheaper and offer similar services.

France accounted for registry of 13.3 million Internet subscribers in 2005 (Source: ARCEP (Regulatory Authority for electronic communications and postal services). While the number of subscriptions called "Lite" steadily decreased and the so-called "broadband" (over 512 Kbits / second) declined with a total of 9.45 million subscriptions (of which only 560,000 through the cable, the rest corresponding to ADSL), and had an increase of 44% in the market year after year.

In addition to these distinctions between cable / DSL, high / low flow rates, the market for Internet access was a very important development in 2002 with the arrival of the Freebox in the market.The study of the box market was not easy. The numbers of ARCEP, were very reliable and they focused on the internet in terms of household equipment, and also the nature of it.

Tags:Telecommunications sector, Internet, Livebox, Freebox, Neufbox, ADSL

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