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Iliad mounts new broadband price offensive in France

Tue Dec 1, 2009 11:10am EST

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* New offer takes aim at Numericable--analyst

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* Shows Iliad's support for both Alice and Free brands

PARIS, Dec 1 (Reuters) - French telecoms operator Iliad (ILD.PA) launched a low-cost "triple play" offer for under 20 euros ($30.13) on Tuesday, undercutting a 30-euro price level in the broadband market that had lasted seven years.

The offer comes several weeks after a similar offer from rival Numericable [YPSOFN.UL] and could add pricing pressure on larger rivals France Telecom (FTE.PA), Vivendi (VIV.PA)'s SFR and Bouygues Telecom (BOUY.PA).

Iliad's new bundle combines high-speed Internet, telephone and televison for 19.99 euros a month under the "Alice" brand. Iliad is seen as a pioneer of the triple play offer and helped set a 29.99-euro market threshold after launching in 2002.

"(Iliad's) offer is intended...to pull the rug out from under Numericable," said an analyst.

"But that doesn't mean it is good news for prices. It's a sign the market is getting more mature," he added.

At 1600 GMT, Iliad shares were up 0.67 percent, at 80.71 euros, while the FTSE Eurofirst 300 index was up 2.2 percent.

Numericable said in September it hoped to get a 25 percent share of the new subscriber market with its triple play offer priced at 19.90 euros, due to start on December 6.

Bouygues Telecom recently launched a "quadruple play" offer for 44.80 euros per month, which includes mobile calls.

($1=.6638 Euro)

(Reporting by Marie Mawad, writing by Lionel Laurent, editing by Marcel Michelson)

((lionel.laurent@thomsonreuters.com; +33 1 49 49 56 85; Reuters messaging: lionel.laurent.reuters.net@reuters.com))



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