France’s newest mobile operator Iliad has no plans, or need, to merge its Free Mobile unit with a rival, according to group deputy CEO Thomas Reynaud.
Speaking on a conference call on the company’s Q4 2012 results, Reynaud sought to dispel…
France’s newest mobile operator Iliad has no plans, or need, to merge its Free Mobile unit with a rival, according to group deputy CEO Thomas Reynaud.
Speaking on a conference call on the company’s Q4 2012 results, Reynaud sought to dispel persistent rumours that Free may merge with a rival local operator. Competitors include France Telecom-Orange, Vivendi’s SFR and Bouygues Telecom.
“It’s not on the agenda” he reportedly said, adding that the group’s revenue growth of close to 50% for 2012 proves it does not need external help to grow. Reynaud said the group’s focus is on gaining market share in both fixed and mobile and deploying its networks.
Free caused significant upset in the French market when it made its debut in January 2012, prompting widespread speculation that there would be in-country consolidation.
Free was said to have been in talks with Vivendi about a tie-up with SFR but the media and telecoms group has repeatedly denied its local telco is for sale.
Morningstar senior equity analyst Allan Nicholls told TelecomFinance earlier this month that he thinks the French regulator would not allow Free to merge with a rival for some time.
According to Iliad, Free had more than 5.2 million subscribers at the end of December 2012 – almost 8% of the French mobile market.
The mobile unit contributed €843.9m (more than a quarter) to the group’s consolidated revenues of €3.15bn for the year. Iliad attributes Free’s performance to its “innovative services” and “major synergies” with its landline business.