Bouygues to bid for a 3G license in France

date: April 17, 2002

Bouygues Telecom said Wednesday it is to bid for a UMTS 3G mobile phone license in France after evaluation of the terms and conditions of the licenses.

The company will submit an application to the Autorité de Régulation des Télécommunications on May 16 at the latest. If the request is accepted, Bouygues Telecom will have its licence with at the end of November 2002.

Bouygues said it would rise between 750 million euros and 1 billion euros through a bond issue to finance its share of Bouygues Telecom's 3G license fee.

In early March, Telecom Italia has bailed out of the French 3G race, and sold its shares in Bouygues Telecom, the only French incumbent not to hold a 3G license, back to the firm's parent group Bouygues. This new development is also considered by many analysts as a strong sign of Bouygues Telecoms' intent to bid in the second round of the French 3G license contest, which will see two additional licenses on offer.

Bouygues is France's third largest mobile phone service operator. It had, however, pulled out of the 3G race in January last year citing the hefty, EUR5bn price tag. The government has now lowered the price for all license holders.

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