As uncomfortable a notion though it might be, Iliad’s business model, a precursor in some ways to Google Fiber and resembling in many ways the cable TV approach to costs, might represent the future of the landline service provider business, which is to say, if costs must be attacked, Free, Google Fiber and cable TV companies already are showing key ways that can unfold.
Use of Wi-Fi access to economize on use of mobile network resources is a principle Iliad Free Mobile relies upon, and which cable TV companies also are expected to employ as they enter the mobile services business.
Like Google Fiber and Facebook, Iliad builds its own customer premises equipment. And like Google Fiber and cable TV companies, Iliad vigorously controls operating costs, operating with fewer people, and using more streamlined, self-provisioning processes.
So far, it seems to work. For the past four years, Iliad has added the most new accounts of any French mobile company. In its most recent quarter, Iliad added 215,000 net new subscribers for the 17th straight quarter.
Iliad also added 78,000 new Interent access subscribers, the second-best performance in terms of net adds in the fixed networks business.
At the same time, overall revenues grew about eight percent, year over year, 10 percent in the mobile segment and four percent in the fixed network segment.
The requirement for driving out cost and capital intensity is one reason traditional services providers are shifting to virtualized networks, open source software, making greater use of Wi-Fi and eventually will use more shared spectrum as well.
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