A French tax rise means that many French smart phones owners will get their contracts canceled and get to keep their telecom subsidized smartphone.
The French Government and the EU have pressured French telecommunications companies change VAT charges for internet service. Some of these companies have been charging this vat on smartphone contracts.
These customers may now void their contacts which included smartphones at much discounted rates, due to consumer protection laws. The telecom companies will suffer because they invested smartphones to keep their customers and now the customers may transfer to lower priced companies.
Stephane Dubreuil, a telecommunications analyst explained that “It’s fantastic for the client, but economically, it’s catastrophic for the operators.”