By William Horobin and Inti Landauro

AIX-EN-PROVENCE, France--The consolidation push in French telecoms isn't over, although the largest operator, Orange (ORAN, ORA.FR), won't be leading the drive, the company's chief executive said Saturday.

"Nobody can say it's over because the problem remains: we are still four [operators] and I don't think it is sustainable to remain four," Stephane Richard said on the sidelines of Les Rencontres Economiques, an annual conference of chief executives and policy makers. "The game is not over yet."

The entry of Iliad SA (ILIAY, ILD.FR) into the French mobile market in January 2012--joining Orange, SFR and Bouygues SA's (EN.FR) Bouygues Telecom--sparked a price war that has crimped margins and held back investment, the operators say.

Orange had been in discussions about merging with or buying Bouygues Telecom, but it said earlier this week that it can't pursue a deal.

Speaking in Aix-en-Provence, Mr. Richard said if Orange had led the consolidation in France, it would have had to sell off large swaths of assets to satisfy the European Commission's competition rules.

It will be up to two other French operators to lead the consolidation now, he said.

"Somebody else will have to jump into the ring. There are people who could do it," he said.

Still, Orange would be prepared to play a role if two merging competitors had to sell assets under antitrust rules.

"If we were called on to take assets and mobile frequencies, we would of course look at it," Mr. Richard said.

Write to Inti Landauro at inti.landauro@wsj.com and William Horobin at william.horobin@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires