France Telecom has slashed its fixed-line call connection charges by a quarter, in a move that will cost it €30 million in lost revenues.
The incumbent has ended a 30 year-old zoned pricing model with its new tariff, which applies a single connection charge to all landline calls placed in France, claiming the move will shave at least 25% off bills for seven million fixed-line customers.
It has also slashed call charges by 55% during peak hours, and 65% off-peak, which will cut around €20 cents from the cost of a typical five minute call in peak hours.
Calls to Web-based phones will now be billed as local calls, and the firm has abolished a complex time credit charging structure in favor of a flat-rate connection fee.
“The initiative falls squarely in line with the policy of simplifying the Group’s range,” the firm states.
Customers living in French Guyana, Guadeloupe, Martinique, St Martin and St Barthelemy will see the cost of calling a French landline fall 20%.
All-in, the lower charges will impact revenues to the tune of €30 million, a spokesman told WSJ.com.
Combined revenues from France alone fell 2% to €11.5 billion during 1H10.