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French may re-run 3G license auction again

date: May 30, 2001

There is mounting speculation that the French Finance Ministry may order the auction regulator French Telecommunications Regulator-ART to re-run the beauty contest again that only attracted two bidders of the four available French 3G licence, when the assembly results tomorrow.

The contest, which began in 1st January, evaluated applications for 3G licences on the basis of 14 criteria, scoring candidates out of a possible total of 500 points. At present only France Telecom and SFR (Vivendi) are still committed to paying the total £3billion each for the licences. Home operator Bouygues failed to meet the criteria and Deutsche Telekom and Suez-Telefonica withdrew after the French government was not ruling out a price reduction.

If the two remaining licences are just given away, France Telecom and SFR will demand all its money back. However if the whole thing is re-run, France will lag behind its EU partners and possibly fall foul of EU requirements that all 3G licences are awarded by next January.

 



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