Bouygues has entered into exclusive negotiations to acquire one of the most important virtual operators in the French mobile landscape. What put the group back in the race against its competitor Free.
Entangled until recently in a showdown with the state over 5G, Bouygues Telecom * continues to be talked about. Driven by a happy new year 2019, the operator set out to sketch one of the largest French virtual operators, Euro-Information Telecom.
The brand created in 2005 is behind the offers of NRJ Mobile, CIC Mobile, Auchan Telecom, Crédit Mutuel and Cdiscount. In all, Bouygues would like to get more than two million customers, 30,000 advisers and 4,200 points of sale. “Thanks to this agreement, Bouygues Telecom could increase its customer base and strengthen its commercial footprint by offering its offers to local credit unions of Crédit Mutuel and CIC bank branches, spread across the country”, explains Richard Viel, Managing Director of Bouygues Telecom.
Bouygues, wants to get back into the race
Euro-Information Telecom has a significant advantage: contracts signed with Orange, SFR and Bouygues to take advantage of their networks. Enough to offer a wide range of options and mobile covers to its customers. For the moment the two groups are only in an exclusive negotiation phase, but “Subject to obtaining the necessary administrative authorizations, in particular from the French Competition Authority”, Bouygues could well get its hands on the customers and the distribution network of the virtual operator for the modest sum of “530 million euros payable at closing, and an additional portion of between 140 and 325 million euros, subject to the achievement of economic performance criteria, and payable over several years”.
This acquisition could also allow Bouygues to return to the race against Free which has 13 million and a few subscribers against 11 million for Bouygues.
* Les Numeriques is part of the Unify group, owned by TF1 (Bouygues)