Telecom Industry Struggles for Balance Amid Fixed-Line Growth and Mobile Slowdown

Tech
By 24matins.uk,  published 18 July 2025 at 7h26, updated on 18 July 2025 at 7h26.
Tech

The telecom sector is navigating a period of transformation as fixed-line services experience renewed growth while mobile offerings show signs of slowing down, prompting industry players to adapt strategies in search of a sustainable balance.

Tl;dr

  • Fixed internet grows, mobile revenues stagnate in 2024.
  • Value-added and prepaid mobile services sharply decline.
  • Operators face mounting pressure on interconnection earnings.

    • Shifting Landscapes in Electronic Communications

    As we move through 2024, the landscape of electronic communications in France reveals a mix of progress and underlying tension. While certain segments demonstrate resilience, others are struggling to maintain momentum — a pattern shaped by intense competition and rapid technological changes. The sector’s major players, including Bouygues Telecom, SFR, Orange, and Free Mobile, must constantly adjust their strategies to keep pace.

    Fixed Broadband Shows Strength Amid Declines Elsewhere

    A notable highlight this year: the robust growth in the fixed segment. By the final quarter of 2024, revenues from fixed services rose to 4.4 billion euros excluding tax. This surge is largely fueled by sustained demand for high- and very-high-speed internet services, buoyed further by price increases that began at the close of 2022. Consequently, the average monthly bill per subscription climbed to 37 euros before tax — an increase of 1.7 euros over twelve months.

    Yet, this overall progress masks a persistent decline within traditional low-speed offerings. Despite attempts at price adjustments, revenues from low-speed (RTC) services continue to fall sharply, suggesting that older technologies are being left behind as consumers flock to faster alternatives.

    Mobile Sector Under Strain

    On the mobile front, revenue stabilization has replaced prior years’ growth. Total turnover reached 4.9 billion euros excluding tax during the last quarter — representing only a modest rise of 0.4% year-on-year. The dominance of contract-based plans is now overwhelming: these account for a staggering 97% of all sector income.

    However, this strength hasn’t insulated operators from key declines:

  • Sales of mobile devices slipped by 3.5% over twelve months.
  • The prepaid segment shrank by 6.9%.
  • Value-added services (VAS) fell sharply by 7.6%, while voice call and SMS usage continued their downward trajectory.

    • Instant messaging apps appear to be driving much of this shift — the average French customer now sends just 92 SMS each month, far below numbers seen less than a decade ago.

    Trouble for Interconnection Revenues

    Another pressure point is emerging among wholesale transactions between fixed and mobile operators — commonly known as the « gros » market. Income from interconnection dropped markedly by 5.6% over the past year, settling at just above two billion euros before tax. This decline reflects both a slowdown in fiber optic rollout and significant reductions in regulated mobile call termination rates since early this year.

    Interestingly, one bright spot persists: « roaming in » revenues posted a mild gain of 2%, propelled by surging data traffic from foreign visitors — up almost 16%.

    All told, France’s electronic communications sector finds itself at a crossroads where adaptability could prove vital for future growth amid these rapidly shifting dynamics.