Stéphane Richard prefer the lives of three (rather than four) – The World

Le Monde | 16/06/2015 at 16:05 • Updated 06/16/2015 at 4:17 p.m. | By Anne Eveno

Stéphane Richard, CEO of Orange and Emmanuel Macron, the minister of the economy are not always on the same wavelength. The proof was given, Tuesday, June 16, by the head of the telecommunications company, which the state holds shares amounting to 24.9%. Speaking at a prospective symposium on digital markets, organized in Paris by Idate, Richard said “ the size of the French market rather advocates a three converging market operators ” .

About This was a response to Mr. Macron, which on May 22 in an interview with Voices , held that the subject of consolidation in France n ‘ was more relevant: “ In France, the sector has reached an equilibrium point,” had assured the minister, breaking the discourse of his predecessor, Arnaud Montebourg

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Currently, France has four operators: Bouygues Telecom, Free, Numericable, SFR and Orange. But periodically the markets buzzing with rumors about the fate reserved for Bouygues Telecom, which would be the most fragile of these players following the arrival of Free, in 2012 and the price war has driven it.

“ The time is not concentration among operators, but to investment. The concentration is less equipment, fewer networks and less jobs “, considers Mr. Macron

Read also:. Telecommunications: Mr. Macron not to fewer operators in France

“The constitution of large European groups makes sense”

While recognizing that “ passing four to three operators could take time or never happen “Richard can not help noting that in” major markets outside Europe, there is much less actors for bigger markets . “

On the other hand, in Europe, in recent months, a number of merger and acquisition activity occurred. Some have led to a reduction in the number of players involved in the mobile market, others in marriages between mobile and fixed operators.

“ Why in this logic aurait- she no place in France ? “Therefore questions the CEO of Orange. She has already started in some way with the acquisition in 2014 of SFR by the cable operator Numericable

Read also:. Weddings all-out in European telecoms

As for the likelihood of cross-border marriages occur, Richard believes that in the perspective of a digital single market, “ the formation of large European groups makes sense “and that ” Orange is one credible players in a pan-European strategy “. We also regularly lends the incumbent intends to approach Telecom Italia

Read also:. Vivendi and Orange eyeing Telecom Italia

Falling Investments

Failing to marry, some operators of this great game of Monopoly imagine other schemes, such as asset swaps. This is the case for example of the ongoing discussions between the British Vodafone and American Liberty Global

Read also:. Vodafone and Liberty Global are exploring asset exchanges

Mr. Richard also said on Tuesday that he disagreed with Mr. Macron when it considers that the concentration is the enemy of investment. In support of his thesis, the CEO of Orange indicates the United States, highly concentrated market, investments grew by over 50% between 2006 and 2013, while investments of the seven major European operators have fallen 7% over the same period.

In France, since the entry of Free, in 2012, on the mobile market, investments (excluding frequency purchases) operators have registered a decrease, respectively EUR 7.2 billion and EUR 6.9 billion in 2013 and 2014, according to figures published by the Regulatory Authority for Electronic Communications and Posts (ARCEP), Constable of telecoms.