Free Acquires Alice France

Iliad, the parent of the French broadband provider Free, has completed its acquisition of Alice France for 775 million euros. This price reflects:

• A portfolio of about 850 thousand active subscribers
• Loss carry forwards which will generate a tax savings of 350 million euros for Iliad
• Cash and equivalents of 15 million euros

Free stated that this acquisition would return it to the position of the leading competitive broadband provider in France with about 4 million subscribers and a 25.5 percent market share.

This acquisition puts Free ahead of Neuf Cegetel, which achieved the leading position through a series of acquisitions. Free has set the standard offering for broadband in France with a complete triple play offering of 29.99 euros per month.

Frees next challenge is how to enter the mobile market. Both France Telecom's Orange and Neuf Cegetel's parent company SFR are major mobile operators in France.