3G arrives in France

June 25, 2004

Gartner Analysis

SFR, France's second-largest operator of mobile-phone services, is trickling 3G services onto the market. It will need to do more to generate consumer enthusiasm.

Event

The French mobile phone operator SFR has confirmed a report on 17 June 2004 that it has launched 3G mobile phone and data services in Paris, Lyon and Toulouse. It is offering two handsets, one from Sony Ericsson and one from Samsung. It will offer the first 5,000 subscribers an introductory offer of only one euro for the Samsung handset.

Analysis

Only existing customers can subscribe to SFR's new service. They have a choice of two handsets. But a reasonably complete package of services includes international 3G roaming, handover from 2G to 3G, number porting and friends-and-family deals. SFR seems to appreciate that person-to-person video needs to have two devices online at the same time. The indicated prices apply only to heavy users subscribing to SFR Pro contracts. The handsets from Sony Ericsson and Samsung are expensive at 499 euros, and the limited offer on the Samsung may need to be extended. SFR has so far made no formal announcement of this service. There is no marketing information on its Web site. SFR will have extended its service to 12 cities by the end of 2004 and will open it to new subscribers then.

This is a very low-key way of introducing 3G services. SFR can continue selling subscriptions to its Vodafone live! offering, which is operational in several other countries. So SFR, like other operators, has avoided the first-mover disadvantage that faced 3 UK, which ended up selling 3G as a heavily discounted voice service. In the second wave of 3G launches, operators looked more to business users by offering data cards for laptops to connect to general packet radio service, as well as 3G. Now, SFR has launched an offering for consumers and is promoting better and faster data services, including video telephony. But dribbling services onto the markets is not the way to generate any kind of enthusiasm.

Recommendations for operators aiming to attract consumers to 3G services:

-- Promote the service in a clear and attractive way over all channels to the market.
-- Launch services for as wide an audience as possible to achieve momentum in the market.