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Free Shakes Up French Broadband Market

Recent Acquisition Pushes Operator to Number Two Position

PARIS, FRANCE - 8 January 2009 - Free, challenger in the French broadband market, is now the second largest Broadband Service Provider (BSP) in France, according to a report just published by Strategy Analytics. The report, "Broadband Service Provider Performance Benchmarking: Europe Q3'08," shows Free's 2008 acquisition of Alice pushing the BSP over the four million sub mark, and into the second position in the French market.

While incumbent France Telecom remains the market share leader with eight million subscribers, Free has overtaken Neuf Cégétel as the leading alternative carrier, with an estimated 24% market share. France's top three BSPs now control over 90% of the market.

"As Strategy Analytics predicted, the French broadband market in 2008 was characterized by intense M&A activity" said Ben Piper, Analyst and Director of the Strategy Analytics Multiplay Market Dynamics Service. "In just one year, the competitive landscape has changed significantly, and the market is now approaching sustainable equilibrium."

"France is somewhat of a bellwether for the rest of Europe," noted John Lee, Analyst in the Strategy Analytics Digital Consumer Practice. "We expect other major European markets to follow the same path toward consolidation."

The report tracks quarterly subscriber growth trends for over 75 broadband service providers (BSPs) operating across Europe, and covers key metrics such as subscriptions, market share, net adds and ARPUs. This current edition includes expanded Eastern European coverage, including Croatia.


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