France wants EU to help European 3G operators
October 29, 2002
A spokesman for French President Jacques Chirac said the French
government wants the European Commission to come up with initiatives
to help European telecoms with debts problems from buying 3G licenses.
The government wants the duration of 3G licenses to be extended
to allow the cost to spread over a greater number of years. In addition
they want EU rules to be changed that would let holders of 3G licenses
to trade them with other telecommunications companies. It means
it would be counted as assets, easing the balance sheet problems.
Other ideas include increasing the amount of funding available
to telecoms for 3G research and development.
Chirac believes that unless the EU helps out the European telecom
industry, the industry will lose its technological edge over American
competitors and their cdma2000 technology established by Qualcomm.
A spokesman said that no direct financial assistance from the EU
budget will be offered, but it does not rule out writing off auction
debts worth over several billions or allow operators to sell their
licenses.
Chirac told reporters after a European Union summit last Friday
that more than 200,000 jobs had been lost.
"Decisions can only be taken at a European level. Europe must reaffirm
its support for the telecommunications sector in a very competitive
global environment," he said.
European Commission President Romano Prodi said Friday that the
Commission would come up with an aid package for the telecom industry.
In France, 3G licenses have been extended from 15 years to 20 years.
France Telecom, partly owned by the French government (55%), has
been badly hit by the 3G revolution. Its net debt stood at 70 billion
euros at the end of June and industry experts believes the government
may need to spend between 8 billion and 10 billion euros.
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3G Motorola A920
