Numericable expects SFR’s revenues to decline until 2015

23 Apr 2014

French cable operator Numericable is anticipating a continued decline in revenues at its newly acquired domestic cellco SFR until 2015, local news source BMFTV reports. According to an internal Numericable document seen by the media outlet, the broadband provider is forecasting that SFR will return to growth thanks to its introduction of 4G Long Term Evolution (LTE) technology, alongside less intense competition from Iliad (Free). ‘The aggressive 4G Free offers should have a more limited impact than 3G because Free’s 4G offer will be constrained by the limits of Free’s network – in [terms of the] number of antennas and frequency capacity’, the document notes.

Further, Numericable’s business plan indicates a planned reduction in combined investment from EUR1.93 billion in 2013 to EUR1.78 billion in 2016. The cableco also plans to migrate users of SFR’s fixed network across to its own fibre-to-the-home (FTTH) infrastructure where possible, in a bid to reduce the unbundling cost payable to incumbent Orange France, while Competel’s DSL network, which targets business subscribers, will be shut down completely.

As previously reported by TeleGeography’s CommsUpdate, SFR’s parent Vivendi announced on 5 April 2014 that its Supervisory Board had accepted a takeover offer for its domestic telecoms unit from Numericable (and its majority shareholder Altice Group of Luxembourg), which involves a EUR13.5 billion cash payment and gives Vivendi a 20% stake in the enlarged SFR-Numericable group. The acquisition is subject to union and regulatory approval.

France, SFR, Numericable-Completel,

Subscribe

Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate

Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share