Free
Strategic Concepts & Mechanics
Primary Evidence
"Investment in research and development of equipment and software positions Free as one of the most advanced operators in the implementation of innovative technological solutions. Over time, the group has become a recognized interlocutor of all major global equipment manufacturers such as Intel, Cisco, and Alcatel-Lucent. The brand image is so strong in France that the best French technicians fight to join its teams. With the emergence of the internet in the daily lives of the French, the number of access providers has multiplied. In addition to independent operators for local coverage, promising competitors with particularly strong support include Wanadoo from the France Telecom group, Club Internet supported by the German T-Online after being created by Lagardère, the Italian Tiscali, LDCom, and cable operator Noos."
"The group revolves primarily around Free, with a philosophy of not relying on external providers."
"The story of Free, the internet service provider (ISP) launched in the first months of 1999, is one of technological adventure, but also of an incredible bond created with its subscribers who will accompany it throughout its development. Self-named "Freenautes," and organized into a community via the Association of Free Users (ADUF), these users behave like a true fan club, commenting on every initiative of the operator on dedicated sites such as Univers Freebox, Freenews, etc. This represents significant savings for the group's advertising budget. The first offer put on the market shines with its simplicity. There is no subscription. The user pays the telephone communication related to the duration of their connection at the local internet rate of France Telecom, which then reverses approximately 98% of the revenue generated back to Free. The word "free" is permanently etched in the public's mind on this occasion."
"Broadcasted by France 5 in November 2002, the documentary "In the Life of a CEO" captures the reaction of Stéphane Treppoz, CEO of AOL, on the same day Free was announced. The executive is truly stunned. "What a nightmare, this thing!" he says, pondering the "not obvious" economic equation of his competitor's offer."
"For AOL, which sells a similar subscription for 45 euros per month, the math is simple. If the company aligns, it loses 30% of its revenue. That's one billion euros. Impossible. "It's not because someone jumps off a cliff that I necessarily have to follow him," he tells journalists during a conference call. Today, Free and Xavier Niel are still there. AOL is not."
"Free has developed a DSLAM (Digital Subscriber Line Access Multiplexer or multiplex for digital subscriber lines). This device allows the traditional copper line that runs to the final subscriber to be integrated into the internet network by processing the information flow through a modem (modulator-demodulator) that converts computer digital data into a modulated signal that can be transmitted through an analog network such as a telephone line and vice versa. The"
"Its strength lies in its ability to maintain a very simple model. With just one offering while other players in the sector promote very complex offers with bloated teams to manage them. " To add insult to injury, Iliad does not miss a chance to poke fun at the competition through humorous advertising campaigns. After the slogan "What's good about it being free is that we don't have to pay!" which accompanied the arrival of Free. fr, the Crétin. fr advertising campaign designed in 2002 by Publicis Dialog for the Freebox does not fail to leave the audience laughing on the side of the newcomer. An imaginary access provider is portrayed where it is not pleasant to be a subscriber with customers entangled in cables, limited services and collections of bills. . . and, as the final gimmick "cretin. fr, try it, or else with Free. . . ". No need to be an insider to understand the message."
"So we suffered the Free wave and the €29. 99 price became the norm for everyone. We heard the same discourse as today that Free was destroying value but, little by little, the company found its model. ""
"Xavier Niel does not want to hear about selling. 'And what would I do if I sold? Walk around in a onesie all day? Analysts have been dreaming for years that I give up on this. I don't give a damn. Life is not only about mergers and acquisitions,' he said in an interview with Management-Capital magazine in March 2008. 'During good years, I receive a buyout offer every week. I listen politely because I am well-mannered. And I say no. The story of Free is not over. ' As he affirms on Décideurs TV cameras, the question of money is no longer a problem for him. 'I work for pleasure, I don't have a taste for luxury,' he assures. ""
""There are two people in marketing at Free when there are a hundred at competitors. Xavier Niel was able to impose the brand simply by word of mouth by marrying technical excellence with intuitive marketing. ""