France-based telco Groupe Iliad launched its Free mobile service on Tuesday.

The company’s low-cost model – which starts at just €2 a month – aims to disrupt the French mobile market in the same way that’s its triple play fixed-broadband and TV offering did in 2009.

Free launched with two main tariffs, which are guaranteed for the first three million subscribers:

  • €2 a month for 60 minutes and 60 SMS, which Free claims is four times cheaper than the least expensive offer currently available on the market.
  • €19.99 a month for unlimited calls, SMS, MMS and internet.

For subscribers of the company’s Freebox service, the 60+60 tariff is offered free of charge, while the unlimited tariff falls to €15.99.

“Many existing Free triple-play customers in France will be seriously contemplating a switch to its new headline grabbing mobile launch tariff,” commented Ovum’s Charlie Davies.

Free is not offering phones as part of their tariffs, but a range is available to buy on their website. From 27 January, the firm will offer the iPhone 4S for just €1 for those customers who sign up for a 36 month contract.

Iliad CEO Maxime Lombardini said giving Free customers access to the iPhone “is certain to shake up the French mobile market."

Added Davies: “Free will certainly grab a lot of subscribers initially. Its challenge will be to maintain momentum and push beyond an initial single digit market share."

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