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UPDATE 1-SFR CEO says Q2 "very good" for new subscribers

Published 07/02/2009, 06:48 AM
Updated 07/02/2009, 07:08 AM
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* Q2 "very good" in mobile and fixed phones for SFR - CEO

* SFR sold over 200,000 iPhones, ahead of targets

* To invest 200 million euros in fibre optics in 2009

(Adds more details)

By Dominique Vidalon and Cyril Altmeyer

PARIS, July 2 (Reuters) - French telecoms group SFR had a strong second quarter in terms of new subscribers for mobile and fixed-phones and is ahead of its sales targets on the iPhone smart phone, its chief executive said on Thursday.

Frank Esser told a group of reporters on the sideline of a telecoms conference that: "We had a good momentum, a very strong second quarter in mobile and in fixed phones."

Esser was answering a query over subscription levels.

SFR, which started selling the iPhone in April, has currently sold over 200,000 units and was "ahead" of its targets despite a global economic downturn.

Esser declined to disclose what these targets were.

"If one looks at the iPhone, one sees that people are ready to spend more," he said.

SFR, which last year bought fixed-phone operator Neuf Cegetel, has no immediate plans to launch a "quadruple play" offer (internet, television, fixed-phone and mobile phone) for the consumer market, he said.

Some analysts expect SFR to react to Ideo, the first quadruple-play offer in France launched by Bouygues Telecom on May 25 for 44.90 euros per month.

"We are not against it but it is not our priority," he said. "If there is a real demand from clients, we will react but for now it is not the case," Esser added.

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Esser said it was too early to say if and when SFR would accelerate investment in fibre optics.

"We will spend over 200 million euros in fibre this year. We are keeping our pace," he said

French telecoms regulator Arcep last week recommended using the multifibre solution in large cities. That solution uses one fibre per operator to connect a household and had been backed by Iliad and SFR.

France Telecom had been asking for a monofibre solution, where one fibre is used for all operators to connect individuals in one building.

France's Vivendi has a 56 percent stake in SFR and Britain's Vodafone Group Plc has 44 percent.

SFR is France's No. 2 mobile operator behind France Telecom's Orange with close to 20 million clients, and third in broadband behind leader Orange and Iliad SA's Free.

(Editing by Marcel Michelson and Mariam Karouny)

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