Bouygues Telecom has announced a new transformation plan in a bid to reposition the struggling operator after what it said was a “complete rethink”.

The company has been one of the main losers in the French telecoms market since the arrival of low-cost rival Free Mobile over two years ago.

Revenues continued to fall in the first three months of this year and it made an operating loss of €19 million after it missed out on acquiring rival operator SFR in April.

Last month, Orange confirmed it is in talks with Bouygues over a potential merger although rumours persist that a tie-up with Free owner Iliad is also on the cards.

In response, Bouguyes said it is refocusing its corporate positioning around three core priorities in a bid to remain independent.

First, it said it plans to “develop new usages and mobile internet by continuing to invest in the mobile network in order to maintain its status as the benchmark operator for 4G and very-high-speed mobile”.

Second, it intends to “free up” the internet and fixed telephony market by launching “new, very aggressively-priced, technology-packed offers”.

Third, it intends to “enhance and modernise” its retail estate.

As part of the restructure, 1,516 employees will lose their jobs although those “in direct contact with customers” will not be affected.

The “new” company will come into force from next year.

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