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French propose 3G licenses trading

January 26, 2003

A draft proposal would allow mobile phone operators in France to buy or sell 3G wireless licenses, reported a French newspaper. The government of Jean-Pierre Raffarin wants to include a trading option in the European Union telecoms directives scheduled for implementation by July this year.

Although the new European directives would allow resale of frequencies, each government would take the final decision on the outcome of the transfer.

The new proposal not only includes 3G spectrum but also radio spectrum for television broadcasts and wireless local area networks. Any buying or selling of licenses must have the approval of the government, which has the right to oppose or impose conditions. The buyers have the responsibility to oblige to the conditions enlisted in the license.

In addition, the draft also states that future licenses should be awarded through an invitation to bid and abandons the use of auctions.

France Telecom welcomes the new initiatives that could ease the operator's financial situation. But Bouygues Telecom, France's smallest mobile phone operator, was against the draft law, saying that license resale "seems neither desirable nor necessary".

Spain is the only country in Europe to allow 3G license trading and countries such as the Netherlands are considering allowing their mobile operators to transfer licenses. Current strict guidelines prevent operators from reselling their licenses despite abandoning their 3G operation. They would also hand the license back to the regulator for free.

 


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