France’s competition authority president Benoît Cœuré said the SFR break-up by Orange, Bouygues Telecom and Free is not a simple administrative formality, warning that the consolidation could raise sector tariffs after the group signed a €20.35bn deal.
Cœuré also said the competition authority had received no details about the project so far, with the review process expected to be long and fragmented.
Why the regulator says the SFR dismantling is different
Benoît Cœuré described the operation as not straightforward and said he was circumspect, pointing to a market that is already highly concentrated.
He said reducing the number of players is not strictly anti-competitive by nature, but he pointed to the risk of price increases.
In his remarks, Cœuré referenced 2005, when Orange, SFR and Bouygues Telecom were heavily condemned for illegal collusion.
Files and approvals: where each consortium party must go
The competition authority said it has received no details about the project so far, while the parties navigate multiple regulatory fronts.
Iliad has to submit its file to the European Commission, while Bouygues Telecom and Orange will approach the French competition authority.
The review process is expected to be long and fragmented.
Enterprise impact: SFR Business absorption and the 30-month transition
Bouygues Telecom plans to absorb the entire SFR Business activity, which is described as representing €1.2bn in revenue and 190,000 business customers.
The transaction would effectively create a powerful duopoly against Orange Business in enterprise networks, cloud services and cybersecurity.
The article describes a 30-month transitional phase that adds uncertainty due to technical complexity, during which IT support is expected to reassure end users about service quality and network coverage.
What regulators may scrutinize during consolidation
The article says regulators could focus on cloud services, cybersecurity and critical infrastructure networks such as the French government’s interministerial network.
In that setting, the operators must prove the consolidation will serve investment capacity and technological innovation rather than locking in prices.