Bouygues’ Bid Beats 3G Deadline

date: May 16, 2002 - source: BWCS

Bouygues Telecom has finally applied for one of the two remaining 3G licences in France. So far, the French media, telecoms and construction group is the only company to have registered an interest in the two remaining licences. The French government has said that today, May 16th, is the last date it will accept bids for the UMTS franchises. The entry fee for the 3G race has been severely cut by the government to euros 619 million from the original price of euros 5 billion.

If successful the French number three mobile operator, which has an 18% market share, said it plans to pour euros 4 billion into the construction of a 3G network. Bouygues believes it could begin offering commercial 3G services by 2004. The company still plans to concentrate on its GPRS services and its planned launch of i-mode style services expected later this year.

Bouygues now looks set to join France Telecom’s Orange unit and Vivendi’s SFR as the trio of 3G licence holders. So far, no bidder has emerged for the fourth franchise. NTT DoCoMo, which was mulling a bid, has now paired up with Bouygues. Deutsche Telekom, another contender, has said it will not bid and Spanish company Telefónica, which at one time was eyeing up the French market is also thought to have put its Gallic expansion plans firmly on hold.

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