Carrefour returns to mobile phone market as Orange and SFR raise prices

French supermarkets are making a fresh push into mobile phone contracts, just as two of the country's biggest operators are quietly putting up their prices.

Carrefour has relaunched its own mobile brand, Auchan has reworked its range in response, and Lidl is preparing to enter the market. At the same time, many Orange and SFR customers are receiving letters and emails telling them their monthly bills are about to rise.

Carrefour back after 14 years

Carrefour Mobile went live on October 5, offering three no-commitment plans, all with unlimited calls and texts within mainland France:

• 20GB of data for €6.90 a month

• 130GB for €10.90 a month

• 300GB for €14.90 a month

The retailer first tried its hand at mobile phones in the 2000s before handing its customers over to Sosh, Orange's budget brand. As before, it is working with Orange, using the operator's network and technical infrastructure.

This makes Carrefour a 'virtual' operator, although it will work with the Orange brand. It rents capacity on someone else's network rather than owning its own masts.

Rewards for loyalty card holders

The main selling point is the link to Club Carrefour, the chain's loyalty scheme, which it says has 15 million members.

Members who take out a plan will see money added to their cagnotte (rewards pot) each month: €1 on the cheapest plan, €2 on the middle one and €3 on the most expensive. The money can then be spent in Carrefour shops or on its website.

Signing up is done exclusively online, with the plan then managed through a dedicated app. SIM cards can be ordered at the same time or picked up from around 2,200 participating shops.

Activating the SIM costs €5, and delivery charges may be added on top.

Cheesy marketing

Carrefour is also leaning on humour to promote the launch, as spotted by retail blog Le Web Grande Conso. The SIM card packaging features food-themed puns.

These include Du gigot et des gigas ('leg of lamb and gigabytes') and le réseau sur lequel on peut comté, a play on compter (to count on) and Comté cheese.

Other supermarkets respond

Auchan Télécom also launched in 2006 first running on SFR's network and now using Bouygues Telecom's.

Carrefour's return prompted Auchan to reward its own shoppers, but in a different way. Holders of its free loyalty card get €2 off their monthly bill, except on the €1.99 plan, below.

Auchan plans include:

• 1GB for €1.99 a month

• 20GB for €7.99 a month

• 130GB for €10.99 a month

• 200GB for €13.99 a month

The saving is only available to new subscribers.

Once discounts are taken into account, prices at the two chains are very similar. The key difference is that Auchan customers do not have to spend anything in store to benefit: simply having the card is enough.

Auchan does have a couple of advantages over its rival. Its top plan includes 5G and data use in 160 destinations, including some outside the EU, where roaming charges can otherwise mount up quickly.

The SIM card costs €1 with free delivery, although a €5 cancellation fee may apply.

E.Leclerc's Réglo Mobile has been running for 14 years. It uses the SFR network, with base prices similar to its rivals and 5G on some plans. It does not offer a loyalty card discount or rewards pot.

Unlike Carrefour, Leclerc also lets customers deal with their plans in store.

Lidl, meanwhile, is preparing to launch its own mobile offer, which could push prices down further.

Orange and SFR put prices up

While supermarkets compete on price, Orange and SFR have revived a practice many thought had been dropped: raising prices for existing customers.

SFR: accept or leave

SFR has emailed most of its current fixed-line and mobile customers to tell them their subscriptions are going up. Increases range from €1.49 to €2.49 a month, rising to €4.99 for some internet packages.

Some customers are being given extra data by way of compensation, but not all. None can refuse the rise: the only alternative is to cancel their contract.

Orange: higher plans and steeper fees

Orange customers have been receiving letters and emails about changes to both their plans and associated charges.

One customer told French consumer group Que Choisir Ensemble (formally UFC-Que Choisir) that each of the three mobile plans in his household was going up by €2 a month, with data rising from 130GB to 200GB, more than anyone in the family needed. He was able to turn down the change by contacting customer services. Had he not done so it would have been applied automatically.

New charges linked to Orange's internet offers cannot be refused, however. From November 16:

• A €10 delivery fee will apply when Orange sends out a Livebox or TV decoder, unless it is replacing faulty equipment.

• Penalties for returning equipment late will rise to €300 for a Livebox 6 or newer, €200 for older Liveboxes and €100 for other devices such as wifi repeaters and fibre boxes. They previously ranged from €49 to €200.

• The cancellation fee will be €69, up from the €50 or €60 Orange has usually charged.

Is it legal?

Yes. French law lets telecom operators change the terms of a contract, provided they give at least one month's notice. Customers then have four months from being notified to cancel without fees or penalties.

Why now?

Neither operator has explained the rises. Que Choisir Ensemble believes higher energy costs, which push up the cost of running networks, are likely to be a factor.

The planned sale of SFR to its three rivals, Bouygues Telecom, Free and Orange, may also play a part. Higher prices could make SFR look more attractive ahead of the sale, while Orange may prefer to raise prices now rather than after the deal, when increases would be more noticeable.

Anyone who has received a letter or email should read it carefully, check whether they can opt out, and compare offers before deciding whether to stay or switch.