Things getting cheaper at France Telecom

The beleaguered France Telecom, which has suffered a recent spate of suicides amidst claims of poor management, has just launched a new discount mobile brand that could turn things around.

The new brand Sosh has made some interesting tweaks to the old model in an effort to reduce costs. The operator will not subsidise the phones, and all the customer service and sales will be done online. Customers will also not be locked into one or two-year contracts.

Reuters explains:

“France Telecom expects to recruit 500,000 users to Sosh by the end of 2012 with a marketing focus on the 18-35 year old set. There are three Sosh offers priced from 19.90-39.90 euros.

The move is a departure for France Telecom, whose strategy as France’s biggest operator has long been to charge a premium for its mobile and fixed packages and argue that it is justified by the quality of its network and customer service.”

Mobile prices have dropped anywhere from 15 to 20 per cent in France since the beginning of 2011, and industry experts predict the drops will only continue.

France Telecom’s new brand follows Bouygues Telecom’s launch in July of a low-cost brand dubbed B&You.

What do you think? Stinky desperation, or a solid business move?

Read the latest on all things France in the Carnet Atlantique.

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