France

last updated: January 11, 2002

January 02, 2002	The French government has officially reopened the bidding for the country’s two remaining 3G licences. This time around the minimum price will be considerably reduced after last year’s abortive attempt saw only two licences awarded. This time around, operators will be expected to pay only euros 619 million, compared to the original asking price of euros 4.95 billion. Successful applicants will also be obliged to pay 1% of their 3G revenues to the government. Bids must be submitted to the French telecoms regulator, the ART, by May 16th. The final licence awards should be made by the end of September 2002.

November 21, 2001	France's telecoms regulator, ART has said that it will be submitting plans to the government for the tender of Frances two remaining 3G licenses by the middle of next month. This should allow for the tender to proceed from the very end of this year, or more likely the beginning of next year. Speaking at a press conference, ART's Chairman Jean-Michel Hubert said "We confirm that we wish to submit the dossier to the government between now and mid-December" adding that, "next the finance minister will publish the decree. The call for candidates could be launched before the end of the year or at the start of next year"

October 25, 2001:	Jean-Louis Constanza, Managing Director of Tele2 France, said that his company is interested in applying for a UMTS licence in France now that initial licence fees have been cut to E619m (US$553m).

October 19, 2001:

The French government is thought to be considering opening the auction for its two remaining third-generation mobile licences before the end of this year, following this week’s alterations to the licence terms. According to a report in French daily Le Figaro, the French Finance Ministry will publish new licence terms within six weeks; interested parties will then be given several months to prepare their offers, before the final winners are revealed early next year.

July 2, 2001:

The French awarded two 3G licenses to Orange and SFR at a cost of US$4.5billion per license. Only two companies applied for the four licenses, so the remaining two licenses will be offered in the first half of next year. Any reduction in the license fee will also apply to the existing license holders as well.

May 18, 2001:

ART continues to examine the application files submitted on 31 January 2001 by France Télécom Mobiles and SFR. It wishes to make clear that any analyses or comments which might be expressed regarding its position before the end of the examination period have no foundation. ART will present the results of the application procedure on 31 May and will not make any statement until that date.

6th Feb 01:

French government said it may lower the prices of UMTS licences in a second round, which now seems necessary since only two parties applied for a licence on the deadline of January 31st. Several parties have now shown renewed interest.

4th Feb 01:

The German telecommunications giant Deutsche Telekom is still interested in acquiring a licence for UMTS phones in France, the company's head, Ron Sommer, said.

2nd Feb 01:

Hutchison Whampoa Ltd. may reconsider bidding for a third generation telecommunications license in France if bid conditions become more favorable, Managing Director Canning Fok said Friday.

2nd Feb 01:

The French Finance Ministry said Thursday that it expects to have awarded two third-generation mobile phone licenses by the end of March.

1st Feb 01:

The French government on Wednesday said it would hold a second round of its contest for third generation mobile phone licences, after ART, the telecommunications regulator, received only two bids for the four licences it was offering through a beauty contest.

Second round postponed until May 2002 earliest

31st Jan 01:

Application procedure for 3rd generation mobile licenses closed. Two applications were submitted on time by SFR and France Telecom Mobiles.

30th Jan 01:

Bouygues , the parent company of French wireless service Bouygues Telecom, said on Tuesday it had decided not to enter a bid for one of the four French 3G licences.

24th Jan 01:

Telefonica and Suez Lyonnaise des Eaux have withdrawn from the French UMTS license contest, cutting the number of bidders down to just three. It leaves only the three incumbent operators pursuing four licenses.

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