- In 2023, Orange will increase its prices
- In France, this decision already has a negative impact for the group
- Orange’s turnover is down in France
In France, no jealousy. The majority of Internet service providers and mobile operators are increasing their prices. This is the case of Orange, Bouygues Telecom and SFR. Blame it on a sharp rise in operating costs and a period of global economic crisis. A decision which is, of course, not without consequence. As it is time for the first quarterly review of 2023, Orange is turning pale.
However, overall, the incumbent operator recorded a turnover up 1.3%, to 10.62 billion euros. But it is not at all thanks to France. And this is where the pill is struggling to pass, France being a priority market for Orange.
Indeed, in our green regions, the results are disappointing. Orange’s turnover is down 1.8%. Indeed, the operator recorded a loss of 78 million euros at the start of the year. Which is never fun.
In France, Orange is losing customers
The increase in prices for the giant’s Internet packages and boxes should make it possible to limit the pots and busts and avoid disaster from the next quarter. Nevertheless, the decision is already having a negative effect in France. It is likely to continue in this direction even if the higher prices should provide a necessary balance. It is, in any case, the vision of Christel Heydemann, the new CEO of Orange. “The recent tariff changes which will be fully effective from the second quarter will gradually fuel the growth of retail services” she said.
Despite everything, since the start of 2023, Orange has lost 21,000 customers for the Internet box. Unfortunately for the group, it is not better on the side of mobile customers since the firm recorded a termination rate of 12%, a figure up from the previous year over the same period.
But ultimately, the problem is the same everywhere: Bouygues Telecom and SFR have also increased their prices. Of all the giants, only Free promises not to touch its prices over the next five years. This decision should have a rather positive impact on Xavier Niel’s group.
In 2022, Iliad experienced a year of all records. By ensuring fixed prices, Free should keep many customers, and recover new ones, disappointed with its competitors. The verdict will fall on May 17, the date of the presentation of the group’s first financial results for 2023.
