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France to Sell Fourth 3G Licence at Knock-Down Rate
(03 Aug 2009, BWCS Staff)France Telecom is to challenge the government's decision to sell a fourth mobile licence at a reduced rate. The one-time monopoly operator remains unhappy at the price set by Paris, despite the fact that the licence will now cost more than originally planned. The government announced yesterday that it plans to offer the fourth licence to supply 3G services across France for euros 240 million (US$338.7 million). Previously it had planned to put the franchise up for sale for euros 206 million.
Despite this hike in price, France Telecom remains determined to tackle the government on the issue and plans to take its case to the European Commission. The operator and its rivals, Bouygues Telecom and SFR, each paid euros 619 million for their 3G licences in 2001 and 2006. Clearly they now feel the newcomer would be handed a big cost advantage.
Amongst those who have expressed an interest in the licence, which is likely to be sold next year, are Iliad - the owner of Internet service provider Free and Virgin Mobile.
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