Free (ISP)

Last updated

Free S.A.S.
Company type S.A.S.
Industry Telecommunications
Founded26 April 1999;25 years ago (1999-04-26)
Founder Xavier Niel
Headquarters,
France
Area served
France
Key people
  • Xavier Niel
  • Maxime Lombardini
  • Rani Assaf
  • Antoine Levavasseur
  • Thomas Reynaud
Products Freebox, Freebox TV
Services Fixed-line Internet services, IP television, fixed-line and mobile telephony, quadruple play, network services
Owner Iliad (100%)
Number of employees
5665
Parent Iliad
Subsidiaries Free Mobile (100%)
Free Infrastructure (100%)
Website www.free.fr

Free S.A.S. is a French telecommunications company, subsidiary of Iliad S.A. that provides voice, video, data, and Internet telecommunications to consumers in France. Its head office is in the 8th arrondissement of Paris and it is the second-largest ISP in France.

Contents

Free provides ISP services in France [1] [2] and in the 30 OECD countries. [3] It was the first company to offer a "triple play" service in France [4] [5] [6] through its self-produced singular Freebox set-top box, claiming to have invented the box marketing concept in France in reference to all the other French ISPs who thereafter released "triple play" modems named to include the anglicism box as a suffix. These boxes provide comprehensive telecommunication services such as high-speed Internet, telephone and digital television packages, leading Free to become the world's number one IPTV provider [7] offering almost systematically IPTV to subscribers and optimizing it to be available on most landlines. [8] [9]

Developing its own 3G and 4G networks, Free Mobile was launched in 2012 and became the fourth mobile network operator in France.

History

1999–2001

Free was the third ISP in France to offer Internet access without a subscription or a surcharged phone number, on 26 April 1999. [10] Unlike its predecessors in the niche of access without subscription (World Online on 1999-04-01 and Freesurf  [ fr ] on 1999-04-19), Free's offer was not restricted in time or number of subscribers.

In 2002, Free was the first ISP to provide a V.92 connection. [11]

Free dial-up offer milestones
DateTechnologyDown IP Up IP
1999-04-26 [10] Voiceband 56 kbit/s33,6 kbit/s
2002-02-27 [11] V.92 56 kbit/s48 kbit/s

2002-2003: ADSL at a disruptive price

Since September 2002, Free contributed significantly to French ADSL boom. The offer was able to launch as soon as the incumbent was forced to stop abuse of dominant position and to apply fair wholesale prices. [12]

Free bundled ADSL offer milestones
DateTechnologyDown ATM Up ATM
2002-09-19 [4] ADSL 512 kbit/s128 kbit/s
2003-12-12 [13] ADSL 1024 kbit/s128 kbit/s
2004-07-27 [14] ADSL 2048 kbit/s128 kbit/s
2005-02-09 [15] ADSL 10 Mbit/s320 kbit/s
2005-07-20 [16] ADSL 10 Mbit/s1 Mbit/s
2008-03-20 [17] ADSL2+ 22 Mbit/s1 Mbit/s

2004-2006: Unbundled ADSL and "triple play"

Unbundling, in France, refers to the obligation for the incumbent carrier France Telecom to lease the local loop, because it is a natural monopoly. Although the unbundling process was intended to start by 2000, the actual unbundling process actually started at the end of 2002, after a long conflict between the French regulation authority ARCEP and the non-cooperative incumbent. [18]

Free has to pay a rental fee of €9 per month and per subscriber to the incumbent for the twisted pair of copper between the area central office and the subscriber premises. [19] Although more expensive than the real cost of €7.63, [20] this solution is still far more profitable than the bundled option.

Since January 2003, a Freenaut has maintained an unofficial website, showing figures and graphics about Free unbundled network deployment (Free Unbundling). [21] Another Freenaut website has provided network status monitoring maps Unbundling status and location [22] since the end of 2003. These initiatives are made possible thanks to the transparency of Free's network: their equipment replies to ping and has a meaningful reverse DNS.

Free unbundled ADSL offer milestones
DateTechnologiesDown ATM Up ATM
2003-11-27 [6] ADSL 1024 kbit/s256 kbit/s
2003-12-12 [13] ADSL 2048 kbit/s256 kbit/s
2004-06-04 [23] ADSL 5 Mbit/s350 kbit/s
2004-08-24 [24] ADSL 6 Mbit/s1 Mbit/s
2004-10-20 [25] ADSL2+ 15 Mbit/s1 Mbit/s
2005-01-06 [26] ADSL2+ 20 Mbit/s1 Mbit/s
2005-11-08 [27] ADSL2+ 24 Mbit/s1 Mbit/s
2006-07-26 [28] 28 Mbit/s1 Mbit/s
2007-06-21 [29] 28 Mbit/s1 Mbit/s

2007-present: Fiber to the home

Free FTTH deployment milestones
DateTechnologyDown IP Up IP Deployment
2006-09-11 [30] Iliad P2P [31] 50 Mbit/s50 Mbit/sOne NRO and some testers in Paris
2007-08-31 [32] Iliad P2P [31] 100 Mbit/s50 Mbit/sSome NROs and few subscribers in Paris [31]
2008-06-26 [32] Iliad P2P [31] 100 Mbit/s50 Mbit/sInauguration of Montpellier FTTH network [33]
2009-12-01 [32] Iliad P2P [31] 100 Mbit/s50 Mbit/sInauguration of Valenciennes FTTH network [34]

On 11 November 2006, Free announced the deployment of a new fiber to the home (FTTH) network for its subscribers. [30] The initial plan's goal is to cover Paris as well as some towns in the Paris suburbs and selected neighborhoods in other French cities by 2012. By December 2007, the work was 30% finished, and the remaining work was progressing "at a furious pace". [9]

On 31 August 2007, Free updated the offer with more details. Download bandwidth shall be 100 Mbit/s and TV services shall be available for two televisions, at the same price of €29.99/month. [32]

Free has developed its own fiber network technology, called Iliad P2P, based on Ethernet in the First Mile and having a point to point (P2P) topology. [31] High curvature optic fibers are manufactured by the Dutch company Draka. [35] [36]

The deployment is still essentially in the horizontal phase (the vertical phase being connection to the subscriber premises), and large-scale deployment to customers is foreseen. [37] On 26 June 2008, Maxime Lombardini  [ fr ] and the mayor inaugurated Free's FTTH network in a district of Montpellier. [33]

In March 2008, Iliad made the commitment to cover Paris at 75% by the second half of 2009, and reiterated its goal to connect 4 million French homes to its own FTTH network by 2012. [38] Significant volumes of subscribers will be connected as soon as the legislative framework is in place, [39] expected by ARCEP for autumn 2009. [40] [41]

Offers

Voiceband

Extent

The Voiceband Dial-up internet access offer counts for a very small number of subscribers currently, as 98% of French homes were eligible for ADSL in 2006. [42]

Pricing

Free began its activities with the famous free-of-charge Internet access, although data phone calls fees are not included. Another offer combines an Internet access with 50 hours of data phone calls for 14.94 euros per month.

Freebox offer

Initially, Freebox was the name of the Freebox device, which consists of the Set-top box and Modem. Because of the device's popularity and reputation, it eventually became the name of the offer.

Services

Internet access

Early IPv6 deployment

According to a study published by Google at the RIPE meeting in October 2008, Free is probably the largest native IPv6 ISP in the World. [45] By end 2008, almost all French IPv6 traffic measured in the study comes from Free customers. [45]

Free deployed the IPv6 infrastructure in only 5 weeks, from 7 November to 11 December 2007, thanks to an innovative 6rd (IPv6 rapid deployment) proposal by Rémi Després. [44]

Wi-Fi community network

In May 2009 Free reconfigured the set-top boxes to act as Wi-Fi hotspots by default. With over 3 million hotspots, [46] it is thought to be the largest Wi-Fi hotspot network in the world during that time. They require authentication which makes them only accessible to Free's ADSL and now mobile customers. Their main use is thus to let customers away from home continue accessing the Internet using the ADSL connection of other Free customer within Wi-Fi range. For security reasons this access is isolated from the ADSL user's normal Wi-Fi network, and is given lower priority.

Telephone

Included telephone calls
Included international phone calls
DateNumber of destinations at no extra cost
Landline Mobiles
July 2003 [5]

1 (Metropolitan France, un-bundled subscribers only)

0
March 2004 [47]

1 (Metropolitan France, all subscribers since then)

0
December 2005 [48]

15 (Austria, Australia, Canada, China, Germany, Ireland, Israel, Italy, Netherlands, Portugal, Singapore, Spain, United Kingdom, United States)

2 (United States and Canada)
June 2006 [49]

26 (Taiwan, Norway, Canary Islands, Jersey, Greece...)

2
January 2007 [50]

49 (Turkey, Poland, Luxembourg, Russia, Japan...)

2
September 2007 [51]

70 (Peru, Venezuela, South Korea, New Zealand...)

2
February 2009 [52] [53]

100 (India, South Africa, Laos, Colombia, Indonesia...)

2
December 2009 [54]

103 (Morocco, Paraguay, Trinidad and Tobago)

2

In 2003, Free introduced unlimited phone calls at no additional price, while other phone operators or ISPs charged per-minute fees for telephone calls. [5] Competitors have then been forced to imitate these changes, but with fewer destinations included or at an additional price. [8] [2] Bundled Free subscribers enjoy same free calls as those unbundled since March 2004. [47] Calls to United States and Canada have been free of charge since December 2005. [48]

In 2006, Free and France Telecom were in conflict against an unfair increase of Neuf Cegetel own termination tariff, aimed at undermining unlimited phone offers in France. The French regulator ARCEP then decided to apply a threshold for call termination. [55] Unlimited free phone calls have been perennial in France since then.

Telephone services

A wide range of telephone services are provided at no additional cost, such as an online answering machine, ringback tone customization, call transfer, caller ID, inbound and outbound call filtering, conference calls, and Wi-Fi voice SIP. [56]

Since April 2007, each customer has been assigned a fax number in addition to the traditional phone number. This additional line is dedicated to the online faxing service. [57]

Television

IPTV leader

According to a study published in 2008 by Light Reading, [58] Free is by far the largest IPTV carrier in the World. [59] This fact is also confirmed by the TV Markets Quarterly Monitoring. [7]

ARDP protocol creator

Access rights of television channels are applied securely without requiring any smartcard, thanks to the ARDP [60] protocol created by Free and submitted to the community through the IETF.

Freebox device

The sole property of Free, the Freebox device is loaned to the customer for the duration of the ADSL contract. More than a simple ADSL modem, it is the primary conduit through which Free provides many of its services. It also replaces many devices that customers may otherwise have to purchase and thus provides added value of its own. Customers wishing to use newer models – such as the Freebox Revolution – must pay an extra fee.

The latest revision is actually composed of two parts:

Other services

Corporate affairs

Free head office in Paris. Free HQ in Paris.jpg
Free head office in Paris.

Market share

Since August 2008, the parent company Iliad (including Free and Alice brands) is the second-largest ISP in France. The leader is Orange (former state monopoly company France Telecom), and the third is SFR.

In 2007 (a major consolidation year in the French broadband market), Free was the only ISP brand to gain market share. [63]

Free was the second-largest French ISP until end June 2007, when competitor Neuf Cegetel acquired Club Internet  [ fr ] (T-Online France). [64] Neuf Cegetel used to grow essentially by purchasing its competitors, until it was itself absorbed by SFR. Until 2009, Free has always had a higher organic growth than Neuf Cegetel and SFR. [65]

Iliad regained its second place after buying "Alice Telecom" from Telecom Italia in the summer of 2008. [66]

Until the purchase of Alice France, [66] Free's subscribers growth was exclusively organic, except for the strategic acquisition of the CitéFibre  [ fr ] FTTH ISP in 2006 (about 500 subscribers). [67]

Free broadband subscribers and market share since 2002
YearFree Broadband subscribers ADSL subscribers in France Broadband subscribers in France
BundledUnbundledTotal [68] Unbundling ratioTotal [69] Free market shareTotal [69] Free market share
200295,0003,00098,0003.1%1,361,3777.2%
2003320,000153,000473,00032.4%2,967,43415.9%
2004500,000549,0001,049,00052.4%6,072,72317.2%6,529,99716.0%
2005 [70] 475,0001,120,0001,595,00070.2%8,881,87517,9%9,500,00016,8%
2006 [70] 548,0001,730,0002,278,00075.9%12,019,00019.0%12,700,00017.9%
2007 [37] 537,0002,367,0002,904,00081.5%14,741,00019.7%15,550,00018.7%
2008 [71] 901,1323,323,8684,225,00078.7%16,804,00025.1%17,819,00023.7%
2009 [72] 651,0003,805,0004,456,00085.4%18,500,00024.1%19,690,00022.6%

Profitability

Free claims to be the first profitable ISP in France [4] and to have the lowest subscriber acquisition cost amongst French operators. [70]

The unbundling ratio is one of the key strategic figures:

Because of bandwidth cost, [19] only a subset of the TV services is offered to bundled subscribers; while unbundled subscribers can access value-added services such as VOD and Subscription VOD. These services' revenues are constantly increasing. [39] [73]

In 2007, Free had the greatest EBITDA margin of the sector in Europe, was the only actor to gain market share in France and had a debt ratio 10 times lower than the industry average. Thanks to these assets, the initial FTTH deployment (targeted at 2012) will be entirely self-financed by existing activities. [38]

Although investors are concerned about the investments in both the 3G mobile network and an FTTH network (1 billion euros each), [74] the perspectives of Free and of the whole sector in Europe are promising according to analysts. [75]

Logos and slogans

YearSlogan (translation)Original French slogan
1999Freedom does not have a priceLa Liberté n'a pas de Prix
2007Play on words: "It's all included" or, alternatively, "It's all well understood"C'est tout compris
2008Without doubt the best offer since a long timeSans doute la meilleure offre depuis bien longtemps
2009He has Free, he has all included (wordplay: all included/understood )Il a Free, il a tout compris
2011Feel Free [76]
2012Thanks Free!Merci Free !

Criticism

On 3 January 2013 at 4pm in France, Free released a new firmware for its latest modem named "Revolution" which contained an advertisement blocker. The firmware of the modems was updated when rebooting, and the Ad filtering was enabled by default. Within a few hours, Free gained media attention and was strongly criticized by website editors for penalizing them instead of Free's target Google. On 7 January at 8.30am, the Ad filtering was removed before Free ultimately decided, on 17 January at 6pm, to include the Ad filter and disable it by default. However, customers who restarted their modem between 3 and 7 January had enabled the option without even knowing it.

Since Free is one of the biggest ISP in France, worries started to raise of French hosting forums concerning the people's interest into Ad blockers in general.

See also

General

Services

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Further reading