A €17bn proposal to acquire Altice’s assets in France by Bouygues Telecom, Free-iliad, and Orange was rejected. The need to reduce substantial debts for Altice’s owner, Patrick Drahi, was the driving force behind the offer.

The proposal aimed to consolidate Bouygues Telecom’s position in the French enterprise market, with B2B assets going to them and some to Free-iliad. The bid reflected the need for consolidation and investment in the European telecoms market.

Former ECB President, Mario Draghi, advocated for consolidation in the telecom sector to create stronger competitors. While cross-border consolidation has benefits, cultural, political, and regulatory barriers remain significant obstacles.

The ‘rule of three’ concept suggests that three competitors can scale and invest in individual markets, leading to sufficient competition to benefit customers. Altice/SFR is likely to be broken up in the future due to debt and market forces.

For now, in-market consolidation seems most likely, with Altice/SFR potentially being the next target. The barriers to cross-border consolidation across European telecom markets remain substantial, despite the benefits it could bring.

Read more at Yahoo Finance.: France edges towards further consolidation in telecoms