French govt raise stakes on new 3G license

Natalie Apostolou
04 Aug 2009

The French government has raised the stakes for entry bidding on the fourth national 3G mobile license, setting €240 million ($345.8 million) as the asking price, up from the previous €206 million price tag.

It was anticipated that the bidding process would be initiated before the end of July, but has now been extended to accommodate the change in entry pricing.

Interested buyers need to lodge their bids by October 29 with the expectation of an announcement within eight months.

However, the bidding process could be derailed by angry incumbents who claim the license fee is still severely undervalued.

France Telecom, which along with SFR and Bouygues Telecom invested €619 million each in their 3G licenses, announced that it would challenge the decision with the European Commission.

“France Telecom is going to complain to the European Commission about state aid, that is the advantage being granted to the fourth operator compared to the other three holders of mobile network operating licenses," a spokesman for France Telecom said.

The incumbent carrier has said that it is not interested in taking part in the auction, but wants to ensure a “fair” bidding process.

Both Virgin Mobile and French ISP Iliad have confirmed their interest in bidding for the fourth 3G license. The new license is due to be awarded in 2010.

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