SFR is putting its national fiber network up for sale – to repay some of the operator's immense debt. The launch of this extensive infrastructure, equipped with modern equipment, is already making several major names in the sector salivate. It also has cause for concern for SFR customers, particularly on fixed internet.
The fiber network infrastructure of SFR, a subsidiary of Altice called XPFibre, will soon change hands – even as the parent company is simultaneously preparing to sell the operator with the red square. Two operations that should bring in very large sums: the sum of 24 billion euros is put forward for SFR, while XPFibre is placed more around 8 billion euros.
Thanks to its unique capacities, its cutting-edge equipment and the depth of its coverage of the national territory, the prospect of getting its hands on this infrastructure electrifies the sector. This equipment connects, it must be said, some 7 million homes. This explains the almost immediate announcement of the names of three potential buyers, which are three very powerful investment funds.
The potential buyers are currently three large investment funds
We thus find KKR, which is also positioning itself, in parallel, to acquire SFR. The activities of this American investment group are currently growing particularly rapidly internationally. The firm recently acquired Telecom Italia. Which undoubtedly makes it the strongest profile, if we had to make a prediction.
But we'll also have to take into account GIP, the subsidiary of BlackRock, the most powerful hedge fund on the planet – also American. And also Adrian Infrastructures, a fund based in France. Patrick Drahi, the majority shareholder, will sell his 50.1% stake in the company. The remaining 49.9% is held by the Canadian OMERS, and the insurers Allianz and Axa.
Whoever the new owner is, they won't have a completely free hand. They will first have to deal with three major shareholders whose voting rights far exceed the threshold of a blocking minority. Given the strategic importance of this network, any sale will require the green light from the authorities.
SFR customers are entering uncharted territory
The question remains of SFR customers themselves – since they permanently use this fiber network to benefit from their subscription. The real impact of this sale will largely depend on what happens following the acquisition of the Carré Rouge in September. If SFR is taken over by another national operator such as Orange, Free, or Bouygues, the direct impact should be imperceptible.
As with SFR's acquisition of 9telecom, Alice, or Numéricable, it is mainly the logo on invoices that is expected to change. Things become more complicated if an investment fund wins. Because each has distinct ambitions and strategies. KKR appears to be building a huge international telecom operator, which suggests its decisions will be geared toward continuity for subscribers.
If another investment fund wins, the list of possibilities is limited only by the Karman line. This opens up a multitude of options ranging from creating an entirely new operator to dismantling all of the group's activities... with the risk that there will be little left for subscribers. Whatever happens, SFR is contractually obligated to communicate sufficiently on the subject with subscribers.
Except in the case where you find your phone plan or internet access too expensive. In this case, you are instead offered the option of changing operators to save money, while avoiding the risk of intermittent service continuity.
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