Orange Continues to Grow in Band Broadband Fixed and Mobile, Can Maintain The Pace?

Orange has spent years immersed in a war by hunting in number of mobile lines to its closest rival, Vodafone. That sorpasso occurred in 2014, when for the first time ahead of the British, the French but ONO buying red operator return everything to its original state, at the expense of the purchase of Jazztel’s Orange.

While this last point is resolved the French continue with the path of the last quarters. In the first three months of 2015 they managed to return to growth in the mobile market, approaching 13 million mobile lines, while the fixed market is that more joys reports, for the first time exceeding the two million lines fixed. But seen these numbers have to think will be able to keep pace?

The contract compensates for the decrease in prepaid

Whenever an operator presents results we see how prepaid lines descend, but despite this Orange has managed to add customers in the last year, thanks to the contract segment. At 31 March the operator had already with 12.768.000 mobile lines, a 3.2% more than a year ago. The proportion of contract lines continues to grow (75%), with 9.568.000 lines. In addition to its clients the French give other 3.419.000 lines, belonging to the virtual service provides that its coverage.

Orange, once more, has taken the opportunity to remove chest of their 4 G. ensure that your network today reaches 73% of the population, hoping that this figure will reach 85% at the end of the year, with 1,300 municipalities, including all populations of at least 10,000 inhabitants. The number of customers who enjoy a 4G smartphone exceeds three million, After incorporated more than 600,000 customers to this technology in recent months.

The fixed broadband and pay-TV thrive

And as in its original business, mobile, Orange continues to rise, although not at a disproportionate rate, where the numbers grow at higher rate is in the fixed section. The French have exceeded for the first time in its history the two million lines of fixed broadband, specifically are 2.015.000, after having grown up 13.4% in one year or 50,000 lines in the first quarter of 2015.

Much of that growth comes from the fiber, where Orange has doubled its number of lines, until reaching the 113.000. The operator has also achieved significant growth at its weakest point, the pay television. In a market that is becoming increasingly more complicated, especially now that Movistar has Canal +, Orange has reached 132,000 customers, a 52.6% more than a year ago.

Will it continue at the same pace in coming quarters?

Seen good data of this first quarter of the year from Orange, which contrast with data portability for the last month, we need to analyze that may occur in upcoming periods. The operator already has made it clear which is the goal of its 4G deployment, while in the case of the fiber already has a million homes in coverage and growing.

But in addition to the purchase of Jazztel, which more soon than later we should have news, What will be the future’s Orange It is the course to take in its rates and fiber deployment strategy. They have only two big rivals in the convergence (if discount Jazztel) and we’ve already seen what strategy they. Movistar chooses to upload without gall their prices, citing the quality of its service, while Vodafone wants to squeeze ONO cable.

Seen those moves to Orange should suffice you continue with your pricing strategy content, quite similar to Vodafone in the convergent offer. But where have to tighten is in the deployment of fiber. Vodafone already reaches more than eight million households thanks to ONO while Movistar exceeds that number, waiting to pass with the new regulation.

But is that even Jazztel exceeds the deployment of fibre from Orange, three million households facing a million, so the French need is to give an arreon to its deployment. Now the problem is that their deployment will hand of Vodafone, so it will never approach the number of households covered by them. So either through the purchase of Jazztel or own deployment Orange need fiber, if it wants to maintain its growth rate.