France's ARCEP monitors €20.35bn SFR takeover by Bouygues, Free and Orange

The French telecommunications market is set for a major reshuffle as Bouygues Telecom, Free (Iliad) and Orange have signed a protocol to acquire SFR for €20.35 billion. The deal would reduce the number of operators from four to three and involves the redistribution of SFR’s mobile frequencies among the three buyers.

France’s telecom regulator ARCEP has taken note of the agreement and said it will keep a close watch on network coverage, service continuity and quality throughout the competition authority’s review and any subsequent transition. ARCEP president Laure de La Raudière stated that the regulator will be “particularly attentive” to the obligations attached to SFR’s network.

The authority responsible for approving the merger, the Autorité de la concurrence, warned that the transaction is far from guaranteed. President Benoît Cœuré remarked that the “acquisition of SFR is not a given” and indicated that the examination could last up to 18 months. The regulator must ensure the deal does not lead to higher prices, reduced competition or coordinated market behaviour among the remaining operators. The European Commission may also become involved depending on the jurisdiction of the review.