France Télécom's long-awaited debt restructuring plan will create plenty of near-term volatility in the telecoms sector regardless of its outcome, according to sellside credit analysts.

Rick Deutsch, a senior credit analyst at BNP Paribas, said in a note to investors that while volatility in the telecoms sector has been declining in recent weeks, "volatility in telcos will be a part of life for the next few weeks as the France Télécom story finally is played to its conclusion".