"In France the sector has reached a point of equilibrium. Time is not right for a consolidation between operators but for investment. Consolidation means less equipment, less networks and less jobs," Macron told French daily Les Echos.

"Today the sector counts four operators who each have their place and are engaged in an overall movement to upgrade their infrastructures on 4G and fibre," he added.

In France the entry of low-cost player Iliad (>> ILIAD) into the mobile market in 2012, has put pressure on prices and resulted in open talk of consolidation.

Number two player Numericable-SFR (>> Numericable Group) has said it would be the natural buyer of Bouygues Telecom (>> BOUYGUES), which has posted losses since Iliad's arrival.

There were also three-way talks last year between leader Orange (>> ORANGE SA), Iliad and Bouygues over a deal, but they fell apart on issues of price and how to divide up the company among the two buyers.

The billionaire owner of Bouygues, Martin Bouygues, has however declared publicly multiple times that he does not want to sell the telecom unit.

(Reporting by Dominique Vidalon; Editing by Leigh Thomas)

Stocks treated in this article : BOUYGUES, ORANGE SA, Vivendi, ILIAD, Numericable Group, Altice