Sweden-based alternative telecoms operator Tele2 has sold off its fixed and broadband businesses in France to local operator SFR for SEK3.3bn (£239m).

Tele2 said on Tuesday that the sale of the French fixed line and broadband business will result in a capital loss of SEK1bn. The Swedish operator will however retain its French mobile virtual network operator (MVNO) business.

SFR will operate the acquired 3.3 million strong customer base under the Tele2 brand name for a maximum period of three years, while Tele2 will continue to operate its French mobile business using the Tele2 Mobile brand name.

Tele2 French mobile business had more than 300,000 customers at the end of June.

Lars-Johan Jarnheimer, president and chief executive of Tele2, said: “France has become one of the most competitive markets in Europe and as the market consolidates, we have decided that selling to SFR is the best way to maximize the value. This will also enable Tele2 to focus more on other growth opportunities such as our mobile business, which continues to develop strongly.”