SFR takeover talks extended until June: key points customers in France should know
Deal involving Bouygues Telecom, Free and Orange could affect millions of mobile and internet users in France
There is still no certainty that an agreement will be reached
Gautier Normand/Shutterstock.
Negotiations over the potential acquisition of SFR have been extended, with France’s four major telecom operators still searching for a deal.
On April 17, Bouygues Telecom, Free (Iliad Group) and Orange confirmed they had submitted a revised offer worth €20.35 billion for the assets of SFR parent company Altice France.
The proposal would see a three-way division of SFR’s operations, including its approximately 25 million customers, as well as network infrastructure and frequencies.
Under the proposed deal, Bouygues Telecom would take around 42% of the assets, including SFR’s business customer activity and the operator’s mobile network in less densely populated areas. Free would take around 31%, and Orange 27%.
The exclusivity period for negotiations had initially been set to run until May 15.
Talks now extended until June
A press release issued on May 15 confirmed that “constructive discussions” were still ongoing and that Altice France had agreed to extend the exclusivity period until June 5.
What this means in practice is that all four telecom operators are forbidden from negotiating or entering into similar deals with any other companies until the exclusivity period has expired.
At the same time, the companies stressed that there is still no certainty that an agreement will be reached.
What this could mean for SFR customers
The companies said that no interruption to mobile or internet services would occur during any transition period, and that customer transfers to one of the three operators would happen gradually.
At this stage, however, it remains unclear which customers would be transferred to which operator, and there is no indication that customers would be able to choose.
If the deal is finalised, SFR customers should pay close attention to any emails or contract updates they receive regarding their subscription.
Customers would need to be informed of any transfer to a new operator, and this could also include changes to pricing or contract conditions.
If contract terms are modified and customers are unhappy with the new conditions, they would have the right to cancel without penalty and move to another offer.
Concerns over reduced competition
Another possible consequence of SFR disappearing as an independent operator is reduced competition in the telecoms market.
France has had four major operators since the arrival of Free Mobile in 2012, leading to strong competition and relatively low prices for consumers.
If SFR exits the market, reduced competition could increase the risk of higher prices for mobile and internet plans.
