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Cegetel and neuf to Merge

Citing the need for critical mass in the highly competitive French market, neuf Telecom (formerly LDCOM) announced plans to merge with Cegetel’s fixed line division. The combination would create France’s second-largest fixed-line telecommunications operator with annual turnover of EUR 2.8 billion ($3.6 billion) this year.

As of the end of March, neuf telecom had 540,000 ADSL customers.
Cegetel currently has about 338,000 ADSL customers. The other major players in the competitive French broadband market include Iliad’s Free with 1.21 million ADLS customers, incumbent France Telecom with 3.43 million customers, Tiscali, Club Internet, AOL and Tele2. In the competitive market, 8 Mbps services are currently offered for EUR 15 per month.

The new Neuf Cegetel aims to have more than 4 million residential customers, including 2 million ADSL lines, by 2007. The combined company will offer “quadruple” play services, including Internet access, VoIP, TV-over-DSL and Wi-Fi access, over an ADSL2+ network. The company also aims to capture 20% of the enterprise market by 2007 and to become the leading provider of wholesale services.

Both Cegetel and neuf operate their own national fiber networks, each exceeding 22,000 km.
http://www.cegetel.frhttp://wwww.neuf.com

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