French billionaire and entrepreneur Xavier Niel reportedly approached UK regulator Ofcom to discuss a potential entry to the market by snapping up any mobile infrastructure CK Hutchison relinquishes in its bid to acquire O2 UK.
Arcep president Sebastien Soriano is closely following the progress of talks that could see Orange snap up Bouygues Telecom for about €10 billion ($10.9 billion), and warned that any deal must not harm competition in the sector.
Arcep asked French mobile operators to make specific plans for terminating network-sharing and national roaming agreements that have also been used to delay the construction of their own mobile networks.
After weeks of speculation, Orange and Bouygues Group confirmed they are in preliminary discussions over a possible merger between Orange and Bouygues Telecom.
Orange remained at the centre of takeover speculation this week amid continuing rumours that the France-based company is looking for acquisitions in its domestic market as well as in the wider European market.
France's four mobile operators invested a combined €2.2 billion ($2.4 billion) in 2G, 3G and 4G networks in 2014, but regulator Arcep said more needs to be done to ensure more sparsely populated parts of France also have access to mobile broadband networks.
France concluded the final part of its recent 700 MHz spectrum auction after telecoms regulator Arcep revealed the positions that have been allocated to the country's four mobile operators within the frequency band.
France completed the auction of six blocks of 700 MHz frequencies after 11 rounds over two days, raising a total of €2.79 billion ($2.98 billion).
Bouygues Telecom said it saw a return to revenue growth from its network operations in the third quarter of 2015 for the first time since the second quarter of 2011, after mobile and fixed network sales increased slightly to €978 million ($1 billion) from €975 million a year previously.
SFR was ordered to urgently open access to its masts to rival French mobile operator Free Mobile by regulator Arcep, in a move that could set a precedent for all of the nation's mobile operators.