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Orange, SFR to Cut Prices in Response to Iliad, Echos Says

French mobile telephone companies are planning to cut prices after Iliad SA (ILD)’s Free yesterday offered 19.99 euro ($26) a month unlimited service, Les Echos reported, citing people at the companies involved.

Similar unlimited service costs between 78 and 85 euros at France Telecom SA (FTE)’s Orange, Vivendi SA (VIV)’s SFR, and Bouygues Telecom, the newspaper said.

Executives at rivals doubt that Free can make a profit at the prices it’s offering, Les Echos said.

To contact the reporter on this story: Gregory Viscusi in Paris at +33-1-5365-5068 or gviscusi@bloomberg.net

To contact the editor responsible for this story: James Hertling at +33-1-5365-5075 or jhertling@bloomberg.net

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