Iliad confirmed on Sunday it had signed an agreement of exclusive negotiations with Bouygues and should cede its network of 15,000 branches. The amount of the transaction is estimated at € 1.8 billion.
"We have entered into exclusive negotiations to yield to Free for an amount up to 1.8 billion euros go our entire mobile network," announced Olivier Roussat, CEO of Bouygues Telecom in an interview with Journal du Dimanche .
This agreement, which covers "15,000 antennas and a portfolio of frequencies, some of which for 4G" is conditioned to the fact that SFR Bouygues acquires sold by Vivendi.
Vivendi, parent company of SFR, which seeks to separate its telecom subsidiary to focus on the media said Wednesday it has received offers from Bouygues and Numericable taking majority control.
The offer was unveiled by Bouygues favors including the Stock Exchange, but seemed to be a problem with the rules of competition.
No capital increase to fund such redemption
Free account fund the redemption frequency and network Bouygues "with own resources and banking group, without recourse to a capital increase," the Iliad in a statement.
This assignment is an "extension of the proposed merger of Bouygues Telecom and SFR" made Vivendi, parent company of Free, and "aims to keep France a strong infrastructure competition," said Bouygues in a statement.
"I welcome the agreement to submit to the Competition Authority a proposed merger between SFR and Bouygues Telecom now include measures ensuring a strong infrastructure competition on the French market for mobile telephony," he commented Meanwhile Martin Bouygues, CEO of Bouygues in this commmuniqué.
"Maintaining a dynamic market for consumers"
The agreement with Free "enables Bouygues Telecom to present ab initio the Competition Authority measures to maintain a dynamic market to benefit consumers," said Bouygues.
In fact, the President of the Competition Authority, Bruno Lasserre, told the newspaper Les Echos that the sale of network Bouygues Telecom Free could "facilitate" the file review.
"Without mitigate the fierce competition on the French market, the agreement, as the merger Bouygues Telecom SFR, would return to the area of mobile telephony a balance to boost employment, achieve the desired investment by government and develop the quality of service and innovation for the benefit of consumers, "still considers the Bouygues group.
Free and become an operator "full and complete"
This agreement enables Bouygues "raise the main uncertainty from (its) project under the Competition Authority. And Free to become a full and complete operator," says Olivier Roussat in this interview to JDD.
It remains for the moment "conditioned the success of our proposed merger with SFR filed Wednesday, March 5 from its parent company, Vivendi," he says.
"We provide an immediate response to the imperatives of competition. In case of merger with SFR, we would have a network too. Again, there is a buyer who will recreate a competitive dynamic. This turnkey solution should facilitate the marriage SFR and Vivendi reassuring, "he says again.
Bouygues Telecom network will not be "destroyed"
The Competition Authority will review the file and if all goes well, migration and network subscribers could take place "in 2015," plan to ensure that the agreement "also ensures employment of the entire telecom sector in France with maintaining three networks. "
"Free wishes to maintain the network with its own agents, warns CEO of Bouygues Telecom. And we want to keep our 1,200 employees are affected. Our network will not be destroyed. Instead, Free will live 15,000 antennas that will become the his own. "
Olivier Roussat also confirmed that his "proposed merger with SFR not cause any departure." Instead, the merger will invest in the Internet and mobile networks and "create jobs. This is the sinews of war."
The merger agreement and fully rebattrait cards in the field of French mobile telephony share four players.
Bouygues boasts of having "the best 4G network"
Orange leader today has 27 million mobile customers, SFR has 21 million, 11 million Bouygues Telecom and Free 7400000.
However a Free relay network underdeveloped and relies on a 3G roaming agreement with Orange , but not for 4G. However Bouygues boasts of having the best 4G network via authorization which allowed him to use this technology on a frequency band that already operated giving him an edge in terms of coverage.
This agreement should enable Bouygues and Free "to reduce costs," according to Olivier Roussat which ensures that the price war being waged by the mobile operators, at the initiative of Free, and more recently in the internet the initiative this time Bouygues should continue.