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Publication Date: June 2008
EVENT SPOTLIGHT
In March 2008, the French government confirmed its interest in allocating a fourth 3G license in separate blocks rather than a single one. This decision followed the failure to allocate a fourth 3G license to Free, the third largest ISP in France. The French regulator, ARCEP, rejected Free’s application due to the ISP’s inability to meet the financial requirements of the license. The company was unable to pay the one-off payment of fees as laid out in the terms of the contract. Since then, the French prime minister has commissioned the regulator to identify the best way to allocate the remaining frequency. The study must be completed by September 2008, leading to a formal decision around Q4 2008.
After years of hesitation, the French government, with support from the regulator, appears ready to begin allocating a fourth 3G license in blocks. In our view, block-based allocation represents the best way to go under current market conditions. Nevertheless, consolidation coupled with strengthened MVNO regulation should remain a priority to ensure competition in the mobile and convergent markets.
Author: Guillaume Touchard
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