France is reluctantly opening up to virtual operators, or MVNOs. The country's mobile sector is dominated by just three operators traditionally keen to protect their market share; Bouygues Telecom - Vivendi's SFR and France Telecom's Orange. Pressure from regulators, and the threat of legal action, has seen the big reluctantly allow other firms to offer services by piggy-backing onto their established networks.
This Virgin and Carphone venture could enable both companies to capture a slice of France's mobile market which currently trails other European countries. The mobile penetration rate in France currently stands at about 75%, compared with a Western European average of 97%. Carphone, through its Phone House stores, is one of France's leading independent High Street mobile phone retailers while Virgin brings its experience of running mobile services in the UK and the US. Virgin Megastores in France would also be used to promote the new mobile service.
