Societe Francaise de Radiotelephone SA, the only competitor to France Telecom for cellular phone service, did not refute a report in La Tribune-Defosses that it is looking for European partners to take shareholdings. With heavy investments in its digital mobile network planned, the company faces a loss-making year and needs an industrial partner to support it on both fronts. The pressure on the company, which is 43.5% owned by Generale des Eaux SA, is growing, as France is expecting to license a third mobile telephone operator in 1995. Between now and the end of 1996, the cellular operator will need to invest around $1,000m to keep its network competitive with that of France Telecom. This year alone, it will invest some $300m, or twice what it had planned six months ago. Among the likely candidates to help Societe Francaise increase its capitalisation to $413m from $240m are Telia AB and Mannesmann AG, owners of similar start-up cellular operations in Sweden and Germany, respectively. Both Telia and Mannesmann hold 10% stakes in TDR, a Societe Francaise de Radiotelephone subsidiary specialising in the transmission of data by radio. While it managed a small profit on revenues about $240m last year, it expects a loss this year. Meantime the battle to become the third operator in France is shaping up to be between Lyonnaise des Eaux SA, Bouygues SA and Alcatel NV. Each of the three declared candidates is allying with other partners. Lyonnaise des Eaux is teamed with Vodafone Group Plc and Groupe Suez, while Bouygues is said to be talking to US West Inc and Cable & Wireless Plc, and Alcatel with STET, Italy.
