EI Telecom is acquiring the MVNO Auchan Telecom from Auchan s mobile unit, with customer transfer planned progressively through December 2013, the companies said.
The deal does not disclose a transaction amount, but it gives EI Telecom the right to keep and use the Auchan Telecom brand while rolling out new offers in time for November.
EI Telecom s MVNO footprint grows with Auchan Telecom
EI Telecom operates CIC Mobile and NRJ Mobile, and will add Auchan Telecom as part of the acquisition.
Auchan Telecom has about 150,000 customers, and EI Telecom expects its combined subscriber base to reach 1.2 million customers after the acquisition.
Auchan Telecom brand continuity for existing and new customers
EI Telecom will continue to operate the Auchan Telecom brand for existing customers, aiming to ensure service continuity during the transition.
The operator will also use the Auchan Telecom brand for new customers after the transfer.
Launch timeline and distribution channels for the relaunch
The transfer of the MVNO business is scheduled to take place progressively by December 2013.
EI Telecom plans to launch new Auchan Telecom offers starting in November, with distribution in Auchan hypermarkets as well as by telephone and via the internet.
ARCEP data underlines the MVNO pressure behind consolidation
The transaction comes as MVNOs face tougher conditions in France. The ZDNET piece ties MVNO destabilization to multiple reactions from network operators following the arrival of Free Mobile.
ZDNET cites ARCEP figures showing MVNOs market share fell to 10.8% from 11.4% between March 2012 and the end of March, and it describes MVNO growth as sharply halted since December 2011one month before Free Mobile s launch.