France to Award Additional 3G Radio Spectrum

The French government has decided not to have another go at awarding a fourth conventional 3G license, and will instead split the block of frequencies into three lots of 5 megahertz, with one reserved for a new operator.

The tender for the licenses will occur in February, with the radio spectrum expected to be allocated before the end of the year.

Last October, French telecommunications regulator ARCEP rejected the sole bid for the 4th 3G license from internet provider Iliad, because it failed to meet the required financial conditions. Iliad, which wanted a reduction or staggering of the €619 million license fee, said at the time that it remains interested in obtaining the license and a renewed bidding process could attract the attention of other operators such as Neuf Cegetel, which has said it would consider bidding.

Following the collapse of the bid from Iliad, the regulator has been studying alternatives to another attempt at a conventional award of a 3G license.

As there are currently three 3G operators, and only two can win the additional radio spectrum - this should encourage competitive bidding for the available slots. It is not clear who would be able to make use of the limited 5Mhz for the remaining band.

ARCEP said that it will also launch a public consultation next month on the conditions and methods for an application procedure for both the 2.6 GHz band and the digital dividend sub-band.

Posted to the site on 12th January 2009