French Operators File Complaints Against 3G License Auction

­Two of France's three mobile network operators have filed formal complaints against the regulator's upcoming 3G license auction. Both Vivendi and Bouygues Telecom have filed complaints with France's highest administrative court, the Conseil d'Etat over the reserve price being set for the license.

The regulator has set a reserve price of EUR240 million for the license, which compares with the EUR619 million paid by the current license holders. The fourth license is however for a smaller chunk of radio spectrum and is being offered in a market with three dominant 3G network operators.

France Telecom has also said that it could complain to the European Commission, claiming that the lower license fee is equivalent to illegal state aid for the new network.

In relate news, Virgin Mobile France is due to hold a press conference tomorrow (Thur 22nd Oct) to make an announcement related to its intention as regard the license auction. Virgin Mobile France has previously suggested that it might be interested in the license as a joint venture with Numericable.

So far, Iliad, the parent company of French Internet service provider Free is the only confirmed candidate. A previous bid for the license by Iliad was rejected by the regulator in October 2007.

According to figures from the Mobile World analysts, the three incumbent operators market share at the end of Q1 '09 was: Orange (47%), SFR (36%) and Bouygues Télécom (17%).

Bidders have until 29th October to submit their bids, with the license expected to be awarded around June 2010.

On the web: Arcep - Mobile World

Posted to the site on 21st October 2009