29
Annual Report -
2013
-
Vivendi
Group Profile |
Businesses
| Litigation | Risk Factors
1
SFR
Since 2012, Wengo has carried out external growth operations to
expand the scope of its activity beyond telephone services: in the legal
field, with the acquisition of Juritravail.fr and Net-iris.fr to expand its
legal services offering; in the field of home-based businesses, with
Devispresto to extend its service offerings to craftsmen and tradesmen;
and in 2013, with the acquisition of Bordas.com, to offer academic
support, provided solely through teachers in the national education
system.
In the first quarter of 2013, the Company opened an office in Brazil, in
addition to France, Spain and Portugal, and recently launched its service
in Italy.
2.4.3.
Watchever
In January 2013, teams from Vivendi Mobile Entertainment (VME, a
wholly-owned subsidiary of Vivendi) focused on the development of a
new offering in Germany.
For a monthly subscription of €8.99,
Watchever
provides a wide
selection of TV series and German, European and international movies.
It is accessible via the Internet on various types of devices: tablets,
smartphones, PCs, game consoles and connected TVs.
2.5.
SFR
SFR is the second-largest French telecommunications operator. As the
only alternative operator to invest significantly in both fixed and mobile
very high-speed networks, SFR meets all the needs of its customers,
whether individuals, professionals, businesses, local governments
or operators, for mobile and fixed telephony, Internet and television
services.
SFR operates in France, as well as in Réunion and Mayotte
through its wholly-owned subsidiary, Société Réunionnaise
de Radiotéléphone (SRR).
As of December 31, 2013, SFR had over 21.3 million mobile customers,
and over 5.2 million households subscribing to high-speed Internet.
This represents almost 28% of the mobile telephony market and
approximately 21% of the French high-speed and very high-speed
Internet market (SFR estimates).
2.5.1.
Strategy / Positioning
SFR is adapting to a rapidly changing market, marked both by the end
of growth in the mobile market, and the extremely rapid growth in uses
and data traffic.
In this context, SFR has repositioned itself strategically, while continuing
to invest in new very high-speed networks, distinguishing its offerings
by content, customer service and network quality, and by investing in
new growth axes, such as Machine-to-Machine, cloud networks and
connected household services.
SFR relies on its network’s performance: faced with declining
profitability and in a difficult market, the operator is continuing to invest
in its fixed and mobile network infrastructure (€1.6 billion in 2013),
particularly in fixed-line fiber and mobile 4G. SFR is the only alternative
operator to invest significantly in these two technologies, as it is
convinced that they will be indispensable to the development of new
uses, and therefore to the rise of new growth opportunities.
At year-end 2013, over 70% of the population had very high-speed
mobile coverage (Dual Carrier, the latest evolution of 3G, and 4G).
In collaboration with the incumbent operator, SFR has rolled out fiber
on a massive scale in France, both in very densely populated areas
and in areas of average population density. In October 2013, it signed
the first “France Very High-Speed” agreements with the Government,
the Lille Metropole and Orange.
SFR offers products adapted to the needs of each of its customers.
Its
Formules Carrées 4G
, which are built around mobile Internet and
SFR services, with premium themed content (the Extras), meet the high
expectations of customers to access services in their areas of interest.
These 100% web offerings without commitment in the low-price
segment are extremely attractive. The operator has also launched a new
Red 5Go
package in 4G (available since January 2014) that includes
unlimited viewing of YouTube videos from SFR’s 4G network, one of the
most popular content services among its customers.
SFR’s positioning is aimed at putting customers at the center of all
its business decisions, with multi-media services (SFR websites,
community self-help forums, social networks and telephony): SFR works
closely with its customers to better meet their needs.
In the business market, SFR offers services adapted to organizations,
while integrating 4G and security services into its packages. Beyond
large accounts and large companies, in 2013, it specifically highlighted
offerings and services intended for Very Small Businesses (VSB) and
Small to Medium-Sized Enterprises (SME). These product innovations
have enhanced unified communications, with the Business Pack
targeted by size of organization, and the cloud network featuring added-
value hosted services.
