Bouygues Telecom: discussions with Orange and Iliad continues
+ DOCUMENT - According to our information, Orange is now studying a redemption in cash of Bouygues Telecom. However, it says it wants to survive solo, and presented to the Central Works Council this afternoon's "transformation plan" which provides for the elimination of 1,516 positions.
Hold me or I make a misfortune! Nobody has retained the arms of Martin Bouygues and it will fall on the spectrum of telecom in France. Bouygues Telecom introduced in Central Works Council a plan to cut 1,516 jobs, or 17% of the workforce! He succeeds the 556 voluntary departures in 2012. For the first time in twenty years of existence, the operator expects to forced departures. The process will occur in two phases: a voluntary redundancy plan and internal reclassification will be implemented from 15 November to 15 January 2014; will be followed by a backup plan of employment, until 15 March.
The 2,000 employees of call centers and 2,500 people working in the shops are spared. Result, the plan focuses on core functions, about 4,500 employees, which will undergo a real bleeding. Actual management of IT services, or 750 people, will be reduced to two-thirds those of marketing, 250 employees, 65%. Many senior and middle management are in the viewfinder. Some may be recycled within the Bouygues group, but it will not be the case for everyone. If Martin Bouygues promised to safeguard employment in the context of a redemption of SFR, the situation has changed since then.
Discussions with Orange
Moreover, the discussions successively with Iliad groups (Free) and Orange for a possible acquisition of Bouygues Telecom "have failed," said Olivier Roussat Wednesday, CEO operator subsidiary of conglomerate Bouygues, during a meeting with journalists. At 5:09 p.m., the action of Bouygues had lost 6.26% and the Iliad, 7.42%.
A statement that leaves room for interpretation, since the fact of not having led does not mean that nothing will happen on that front. Moreover, the incumbent has the mandate Credit Suisse and Lazard to study the acquisition of Bouygues Telecom. According to our information, there has been a little cold between the two companies. Bouygues would put pressure on Orange to announce an agreement in principle on a merger of the two companies yesterday. Objective: To avoid socially. But the incumbent did not accede to this request, preferring to take his time.
Threads are not stopped, we are assured of the Orange side. They are even transformed, provides the "Echos" a source familiar with the matter. While Martin Bouygues wanted to climb to the capital of Orange, Stéphane Richard rather consider Bouygues Telecom to buy in cash, with the help of another telecom operator - Iliad, strongly interested in the network and frequencies of Bouygues.
Meanwhile, the unions, negotiations on the restructuring plan began. They should last all summer. Staff representatives do not seem braced on the restructuring plan that was presented to them. "We will fight to reclassify many people as possible within the Bouygues group, promises Bernard Allain, FO delegate Bouygues Telecom. But recognizes the need to change the business model to survive in a market with four operators. There is a real strategy in place contrary to the plane 2012. "
Moulting depth
Roussat Olivier, CEO of the telecom subsidiary, says the time is not restructuring, but the profound transformation of all processes. "In January, we realized that the business model no longer spinning, has he told reporters yesterday. A saturated four-operator market, it became impossible to volume with new offers. "The teams are so small operator opened two parallel projects: the purchase of SFR - which failed in April - and the transformation of the economic model.
This is the second way that engages today Bouygues Telecom. Olivier Roussat presented his three-point program: continue to grow in the mobile, including increased 4G speeds via aggregation frequency strengthen quickly fixed, by slashing prices, and transform customer relationships. Investment of € 500 million per year in the network remain unchanged. The objective of Bouygues is to quickly grow its fixed market share and find in two or three years, the same level of margin before Free Mobile.
Price war in the fixed
In the fixed, Bouygues Telecom will increase the price war started with the launch of a "triple play" to 19.90 euros. "The market can no longer remain at current prices, says Olivier Roussat. There is not enough to justify differentiation margins sector. "The operator hopes to reach Free portfolio, the EBITDA margin in the fixed approach 40%. "It will take two or three years, but I will kill Free" would tell privately Martin Bouygues. Aggressive commercial offers will be unveiled in the fiber at the end of the month. And Bouygues will invest for good in the fixed, by unbundling 1,500 nodes ADSL access by the end of 2015 and co-investing in the fiber. An agreement has already been signed with Orange for medium density areas.
Department saved and modernized
Bouygues Telecom also seeks to stand by the quality of its customer relations, and to escape the label of low cost. The network of shops (about 600 in France), instead of lose weight, will be strengthened and modernized, with a doubling of investments. A concept of larger stores will be tested in Republic, Paris, at the end of the year, with new departments dedicated to connected objects. The outsourced call centers will be repatriated to France in order to improve the service. All contracts will automatically migrate to the most attractive package for the client. Efforts to simplify and streamline and serve the purpose of reducing costs.
With this transformation plan, Bouygues Telecom wants to "provide the means to secure its future independently." But the price to pay is high for employees.