Virgin Mobile France acquires rival MVNO

Virgin Mobile France has agreed to acquire rival MVNO Tele2 France for a cash consideration of €56m on a debt free basis.

The move will also give UK-based high street retailer Carphone Warehouse a stronger foothold in the French market as it owns 48.5 per cent of Virgin Mobile’s French unit.

Tele2 France has approximately 385,000 customers, of which 375,000 customers are post pay. Following the transaction, Virgin Mobile France will have more than 1.6 million customers, of which 60 per cent are on contracts, consolidating its position as France’s largest MVNO.

Virgin said the Tele2 deal marks a major step forward in its growth plans in France and will help it progress towards its target of being profitable during 2010 with more than two million customers.