Bouygues Telecom, a prominent French mobile operator, solidifies its influence in the telecommunications sector with the complete acquisition of La Poste Telecom. This purchase, for an undisclosed amount, makes Bouygues Telecom 100% owner of La Poste Telecom, known as France’s largest Mobile Virtual Network Operator (MVNO) with approximately 2.4 million subscribers.
Previously, La Poste Telecom was majority-owned by the La Poste Group with a 51% stake, while the remaining shares were held by SFR, a rival network operator providing the mobile network that La Poste used. The acquisition means Bouygues Telecom will migrate La Poste subscribers to its own network once the existing SFR wholesale agreement expires in 2026.
Benoît Torloting, CEO of Bouygues Telecom, commented on this strategic acquisition. “This strategic move with the La Poste group underlines our ambitions in the B2C market. It’s a source of great pride to combine our two brands that enjoy the robust values of a strong local presence, expertise, and agility.”
The acquisition deal was initially announced in February with an expected price tag of around €950 million. However, the deal’s value had been a point of contention. Reports indicate SFR, which owned 49% of La Poste Telecom, sought approximately €700 million for its part and a renegotiation of the remaining contract terms.
While the final sale price wasn’t mentioned in the recent update, previous reports suggest SFR received a notably improved offer. This reflects how crucial negotiations can shape major telecommunications deals.
This acquisition highlights Bouygues Telecom’s strategic expansion in the consumer market, allowing them to potentially harness economies of scale and explore synergies between its existing customer base and that of La Poste Telecom. It also demonstrates the complexities inherent in MVNO operations, especially when reliant on infrastructure from competitor networks.
This acquisition is bound to affect the competitive landscape in France’s telecom industry. With Bouygues Telecom’s expanded customer base, the company could leverage this growth to enhance its market position. However, transitioning customers from SFR to Bouygues’ infrastructure presents operational challenges that will require careful management to maintain service quality.
