Page 28 - 2012 Annual Report

VIVENDI l 2012 l Annual Report 28
GROUP PROFILE – BUSINESSES – LITIGATION – RISK FACTORS 1
1
SECTION 2 - BUSINESSES
SFR
2.4. SFR
SFR is a global telecommunications operator that has been a part of the
French people’s connected lives for over 25 years. It meets the needs of its
individual, business, local government and operator customers, providing
mobile and fixed telephony, Internet and television.
SFR operates in France, as well as through its wholly-owned subsidiary,
“Société Réunionnaise de Radiotéléphone ” (SRR) in Reunion and Mayotte.
As of December 31, 2012, as the leading French alternative
telecommunications operator, SFR had 20.7 million mobile customers
and more than 5 million high-speed Internet subscribers. This represents
28% of the mobile telephony market and approximately 21% of the
French market for high-speed and very-high-speed Internet (sources:
The Electronic Communications and Mail Regulation Authority “ARCEP”
and SFR data).
2.4.1. Strategy/Positioning
SFR is adapting to the changing telecom market conditions: 2012 in
particular was marked by the arrival of a fourth operator and a significant
drop in the price of mobile offerings.
In this context, SFR ‘s goal is to be innovative, pioneering and committed
to its customers. The deployment of very-high-speed fixed and mobile
telephony is a new step that will enable the development of new uses.
SFR relies on:
✱ the performance of its network. In a difficult economic environment,
SFR continues to invest in its fixed and mobile infrastructures
(€1.6 billion in 2012), convinced that the quality of its network is
an added-value for its customers (operators, local governments,
businesses or individuals). At year-end 2012, SFR was the first
operator to make 4G services available to the public; and
✱ simplified offers tailored to the needs of its customers. For the
consumer market, SFR has streamlined its offerings, with:
– the September launch of new Carrés plans, which were reduced
to six plans structured around data and innovations dedicated to
very-high-speed mobile telephony, such as multisurf or Dropbox.
SFR also offers a new customized support policy in the form of
Silver, Gold and Platinum Carrés services, and
– very attractive offers in the low-price segment with the no
commitment Red Series sold on the web.
In relation to the business market, the SFR Business Team
helps its clients by providing them with the best digital service.
SFR provides a controlled cloud computing service and international
telecommunications solutions through the Alliance Network Team (see
Section 2.4.2.3 “Businesses” of this chapter);
✱ a better multi-channel customer experience: the web, social networks,
or it stores (SFR customer service stations); and
✱ new sources of growth. SFR is also preparing for future services:
payment services with the launch of the “SFR PayCard” (a reloadable
contactless prepaid card), home automation with “Home by SFR”
(remote monitoring solution for the home) or cloud services for
businesses with Numergy.
2.4.2. Performance and Services
2.4.2.1. MOBILE
In 2012, the SFR mobile customer base was impacted by the arrival of
a fourth operator in an already mature market. At year-end 2012, the
total number of mobile customers amounted to 20.7 million customers,
compared to 21.5 million at year-end 2011.
Since the second quarter of 2012, however, SFR has stabilized its
subscriber base.
In 2012, SFR’s share of the mobile telephony market in France, excluding
MVNOs, was 28% (source: ARCEP). Its market share of subscription
customers was 30.2%.
In addition, SFR is developing its wholesale business on the basis of new
strategic agreements with Virgin Mobile (in furtherance of the partnership
initiated in 2011 in ADSL and mobile) as well as launching the new SFR
MVNO subsidiaries, such as Buzzmobile in June 2012, which has prepaid
offers to call abroad.
The year 2012 was also marked by the continued growth of mobile data
usage, driven by new generations of smartphones. At year-end 2012, 49%
of SFR customers were equipped with smartphones or tablet computers
(compared to 41% at year-end 2011).