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Vivendi’s SFR May Face Start of New Downgrade Cycle, UBS Says 2013-12-04 07:40:19.891 GMT
By Blanche Gatt Dec. 4 (Bloomberg) -- Vivendi’s SFR faces strong competition on 4G from Iliad, which offered its 4G service yday including unlimited voice/SMS/20GB of data for same price of existing 3G product, UBS says in note. * UBS says Iliad 4G service offered at 50%/60% discount to peers * Says EU20-EU30 premium charged by SFR, peers, for 4G vs 3G is unsustainable; they’ll probably include 4G in low- cost offers * While this may limit churn to Iliad, it may cause service rev. drop to accelerate given “cannibalisation” of SFR’s own high-end offers * Scenario “could get worse” if Iliad starts its own subsidized handset offers * Reiterates neutral, PT EU16; still “cautious” on SFR * NOTE Dec. 1: French Ministry to Discuss Network Sharing by SFR-Bouygues: JDD * NOTE Nov. 26: Vivendi May Distribute SFR Shrs To Own Holders in Demerger * Nov. 27: Vivendi De-Merger to Prompt Re-Rating, Offer 50% Upside: Liberum * Nov. 27: Vivendi Jumps on De-Merger Confirmation, Bollore Appointment
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--Editor: Jurjen van de Pol
To contact the reporter on this story: Blanche Gatt in London at +44-20-7392-0351 or bgatt@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net