Sunday, April 3, 2016

Orange – Bouygues: a status quo that does not help anyone – Les Echos

On Monday, France still has four operators. And everyone tries to play down the situation, following the failure of the redemption by Bouygues Telecom Orange. Orange, Bouygues and Free all explained, after discussions, they could very well continue to grow in the current configuration. Only SFR has remained silent. Despite these assurances, the sector is expected to fall on the stock market. Failure is indeed bad news for the four operators. From four to three, it was the promise of creating value for all

The Biggest Loser, c is undoubtedly Bouygues Telecom. The fourth largest spring a little more fragile yet this failure, even if sales momentum is good for a year (read here). For his part, Free could have won a little time in building its mobile network by retrieving antennas. He could also have its garnish telecom frequencies portfolio, essential to cope with the explosion of the mobile Internet. It will nevertheless be able to enjoy in the coming weeks about the possibility of converting 2G 4G frequencies.



All losers … except the consumer

Patrick Drahi, he misses the opportunity to provide much of Bouygues Telecom, he had failed to buy in June. Jumping on the opportunity offered again, the boss of Altice-SFR had planned to buy the network, frequencies and mobile customers, fixed and Bouygues Telecom companies by paying $ 4 billion. While SFR lost more than one million customers in 2015, it would have helped him recover.

Although it was probably the least to lose in history, marriage breakdown removes Orange hopes to increase its market capitalization – essential in the context of a consolidation of the sector at continental level. Given the check that were ready to Xavier Niel and Patrick Drahi to buy Bouygues assets ($ 6 billion), Orange would not have paid dearly for consolidation then evolve in a peaceful market where he remained leader. The state, in turn, deprives 1.3 billion in taxes that would hit on success of the operation.

also difficult in the future to push telecoms to invest more in high speed fixed and mobile, as the government wishes, since this marriage was all build. Many anticipate layoffs in telecom in the coming months … on the eve of presidential elections. Finally, back to square one should also mean increased commercial aggressiveness between operators. Finally, the real winner will be the consumer.

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