Bouygues Confirms 3G Bid - Licenses I-mode from DoCoMo

Confirming overnight media rumours, France's Bouygues Telecom has confirmed that it will be bidding for one of the two remaining 3G licenses that are due to be sold next month. The company says that the decision, contrary to what had been decided in January 2001, is mainly due to the changes in the 3G license conditions, namely the lower fee and longer license term. Also, due to the lower license fee, the company will not need to raise its debt level, being able to fund the enterprise through shareholder funding - considering the current debt hostile environment, this is a significant benefit for Bouygues.

The company is planning a bond issue, to raise between US$662 million and US$883 million, depending on investor demand. The additional financing need will be met by available cash resources and unused confirmed lines of credit.

In a related move to boost its wireless internet service, and doubtless gain experience in consumer data services, the company has also signed an agreement to license DoCoMo's i-mode service. Bouygues Telecom says that it will benefit from DoCoMo's support and advice enhanced by the launch of i-mode in other countries in Europe. i-mode, which is compatible with GSM/GPRS transport technologies and UMTS, will allow Bouygues Telecom to gradually implement mobile multimedia services, according to the pace and scale of market development.

No launch date was given for the imode service. We should also keep an eye on Toshiba and NEC, who are currently the sole suppliers of i-mode handsets to KPN for its German launch. Either they will see an increase in orders, or other handset manufacturers can be expected to launch i-mode compatible handsets shortly.'"

Posted to the site on 17th April 2002