Bouygues making up its mind on 3G license

date: February 27, 2002

Bouygues Telecom is still in the process of deciding whether to apply for one of the two additional 3G licenses to be offered by the French government. The company said that it now saw "fewer arguments than before for not applying for a UMTS license" and also indicated that it had set up team to work on it.

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 and set a deadline of May 16 for applications for the two additional UMTS licences.

In last November , the French government's alterations to the license conditions and payment terms have been described by the only incumbent without 3G license as possibly presenting a "business case". However, Bouygues Telecom is still undecided whether it will enter the contest. Company strategy and development director, Yves Goblet said: "There is perhaps an opportunity to put together a real 'business case' which cuts some ice with shareholders." A dossier is to be presented by ART to the Finance Ministry by mid December and it is possible that the tender process will be opened again before the end of the year. ART's Chairman Jean-Michel Hubert said: "We confirm that we wish to submit the dossier to the government between now and mid-December." He went on: "The call for candidates could be launched before the end of the year or at the start of next year"

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