The telephony sector today mainly concerns mobile telephony. Indeed, the segment of residential telephony has been slowly decreasing for many years, generated in particular by almost free service.
The telephony sector is one of the key sectors of the French economy with a certain dynamism and a very high penetration rate. Indeed, in 2015, 57.5 million French people have a fixed price and more than 71 million Sim cards are in circulation in the territory (source: ZDNet).
The sector is concentrated with very large players historically present in the sector such as Orange, Bouygues or SFR . The barriers to entry are consistent with the need for antennas that may or may not be owned by the models and possibly the purchase of minutes of communication … Thus, the new players are essentially derived from strategic diversification of large conglomerates such as Virgin for example.
The sector was completely upset by the arrival of Free Mobile, which questioned the prices charged on the market. These tariffs, formerly maintained high, have literally collapsed. In the same way, we have witnessed a paradigm shift with the evolution of a great loyalty forced from the customer to the contract without commitment.
The telephony sector is poorly regulated. This is an area where you have to create volume in order to be profitable. Thus, we are witnessing a concentration of the sector with major financial operations.