French alternative fixed line and internet company Iliad (Free) posted a 32% rise in 2Q revenues to EUR230.7 million (USD294.4 million) in the three months to 30 June 2006, up from EUR174.71 million in the corresponding year-ago period, thanks to strong growth at its broadband business. The company said that sales of high speed internet access services rose by 47% to EUR201.5 million, while even traditional fixed line telephony revenues climbed 22% to EUR37.2 million. According to Telecompaper, Iliad’s Free ISP subsidiary had 1.91 million ADSL subscribers at the end of June, compared to 1.6 million at the start of the year, giving it an 18.2% share of the residential ADSL market (based on France Telecom figures). Broadband ARPU rose to nearly EUR33.5 a month in the second quarter.
On a less positive note, Iliad reported that its traditional voice telephony business Onetel was adversely affected by the success of the group’s VoIP offering. Onetel’s subscriber base dipped to 258,000 at the end of June, down from 298,000 at the end of December 2005; Onetel’s ARPU was around EUR12.20 per month in 2Q. Iliad had 1.38 million unbundled telephony customers at the end of June, or 72.3% of its overall customers, compared to 1.12 million or 70.2% at the end of December 2005. Iliad is aiming to have signed up two million ADSL customers by the end of 2006 and hopes that 75% of all its customers will be receiving unbundled services by that date.