An “inevitable” consolidation in telecoms in France, says Orange CFO – Boursorama

by Mathieu Rosemain

PARIS (Reuters) – France will “inevitably” see its number of telecom operators drop from four to three, Orange’s chief financial officer said on Wednesday, ruling that the delisting of two of them, Iliad and Altice, could facilitate a merger.

The French telecoms market has not fully recovered from the long price war unleashed in 2012 by Iliad with the mobile plans of Free, the four operators, with Bouygues, engaging in fierce competition by taking turns offering offers at broken prices.

Faced with this situation, all attempts to consolidate the sector have failed.

The delisting of Iliad and Altice, however, could be a game-changer, Ramon Fernandez, Orange CFO, told a Morgan Stanley TMT conference.

“For companies that are no longer listed on the stock exchange, it is probably easier to think about (…) strategic options, perhaps consolidation on the French market,” he said.

“I am not saying that we are about to see something happen in France. But when the time comes, and inevitably it will come, it will be easier for these actors to engage in discussions.”

(Report Mathieu Rosemain, French version Bertrand Boucey, edited by Jean-Michel Bélot)