Competition from Free should be less threatening than announced …
The business plan prepared by Numericable for SFR predicts that the financial results of the recently acquired operator should continue to decline until 2015 according to BFM Business. The gross margin should for its part remain “among the lowest operators of similar size in Europe, which limits the risk of an even lower margin” according to the document.
In this context, the operator with the red square should however return to growth in 2016 thanks to 4G. While Jean-Yves Charlier, the president of SFR recently said in an interview with Figaro that the “price war will continue”, the report believes that Iliad’s competition should ease and be less threatening than expected: “Free’s aggressive 4G offer should have a more limited impact than for 3G, because Free’s 4G offer will be constrained by the limits of Free’s network in terms of the number of antennas and frequency capacities ”.
In total, the operator should achieve a series of savings, notably through a decrease in investments and the convergence of networks between SFR and Numericable.