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Altice France rejects €17 billion takeover bid for SFR from telecom rivals

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Altice France, the owner of SFR, has rejected a €17 billion ($19.8 billion) joint offer from French telecom giants Bouygues Telecom, Iliad’s Free, and Orange. The move dampens investor hopes for long-awaited consolidation in Europe’s competitive telecom market.

In a memo to employees, CEO Arthur Dreyfuss confirmed that the proposal, which valued Altice France at around €21 billion, had been “immediately rejected.” The bid’s rejection came after it boosted shares of major telecom firms, with Bouygues hitting a seven-year high before closing 9% higher, while Orange rose 3%. The CAC 40 index also gained 2%, lifted by speculation of industry consolidation.

Despite the rejection, Bouygues, Orange, and Iliad reaffirmed their commitment to the proposal, saying it would benefit “customers, employees, creditors, and shareholders.” Analysts at J.P. Morgan viewed the offer as stronger than expected, estimating SFR’s standalone value at €16 billion but noting potential synergies could lift it beyond €20 billion.

Finance Minister Roland Lescure said the government would be “extremely vigilant” about the deal’s potential effects on prices and service quality. Any merger would need approval from French or EU regulators, given that France has maintained four major mobile operators since 2012.

SFR, the country’s second-largest telecom provider, currently serves over 19 million mobile and 6.1 million fiber customers. Analysts suggest that if consolidation moves forward, it could influence similar restructurings across other European markets.

European telecom firms warn against EU deregulation push, fear market ‘re-monopolisation’

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A group of European telecom companies, including Vodafone, Iliad, and 1&1, have jointly criticized the European Commission’s proposal to relax regulations on fixed broadband networks, arguing that such a move could reverse progress on market competition and fiber optic rollout.

In an open letter published Thursday, the companies expressed concerns that loosening regulations for dominant operators—typically former monopolists such as Deutsche Telekom in Germany—would lead to a “re-monopolisation” of national markets and undermine the EU’s digital goals.

Pushback against deregulation

The European Commission is reviewing rules that currently require dominant network owners to allow competitors access to their infrastructure under regulated terms. The proposal under consideration would ease those obligations, particularly in markets deemed to have improved competition.

However, the signatories of the letter argue that such deregulation would be a “step backwards” for Europe. They warn it would:

  • Contradict the EU’s own pro-competition policies,

  • Stifle the deployment of fiber optic networks,

  • Reinforce the dominance of historical operators in national markets.

“This would undo years of progress and hurt consumer choice,” the letter states.

Fiber optic rollout remains contentious

The development and expansion of fiber-to-the-home (FTTH) networks remains a divisive issue across Europe. Smaller telecoms argue that the incumbent operators—who control much of the legacy infrastructure—already enjoy significant advantages, and further deregulation would only deepen their dominance.

National developments reflect broader tension

Earlier in July, Germany’s Bundestag passed new legislation aimed at accelerating the rollout of fiber and mobile networks. However, critics say that without firm regulatory oversight, smaller providers risk being squeezed out of lucrative markets, undermining investment diversity.

With the EU pushing for widespread gigabit connectivity by 2030, the tension between market liberalization and infrastructure control is emerging as a key regulatory battleground.

Iliad to Invest €3.1 Billion in AI Infrastructure Across Europe

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French telecom company Iliad has announced plans to invest €3 billion ($3.1 billion) in artificial intelligence (AI) infrastructure, focusing on expanding data centers and computing power across Europe. The investment will be made through its subsidiary OpCore, which manages the group’s 13 data centers. In the short term, OpCore will deploy several hundred megawatts of capacity, with an ambition to reach several gigawatts of capacity over the long term.

This move comes ahead of the Artificial Intelligence Action Summit in Paris, where Iliad is expected to make further announcements regarding its AI strategy. The company has also partnered with Mistral AI, a French AI firm, to offer its “le Chat pro” AI model to Iliad’s 15.5 million subscribers in France.

While Europe has been trailing the U.S. and China in AI development, with the U.S. investing through initiatives like President Donald Trump’s Stargate program, Iliad’s investment is a significant step in bolstering the region’s AI capabilities. OpenAI CEO Sam Altman, speaking on the matter, has also encouraged Europe to adopt AI and expressed openness to replicating successful U.S. programs, such as Stargate, in Europe.