UMTS/FRANCEDROP IN LICENCE PRICES POSSIBLE.

• Position: Wireless telecom services - Industry Trend or Event

In early April, Christian Pierret, Secretary of State for Industry, had on the contrary, declared that there was no question of revising fees. The unit price had been fixed at Euro 4.95 billion. Only Orange, the mobile phone subsidiary of France Telecom, and SFR (Vivendi Universal group) came forward as candidates for selection on the basis of qualifications (the result of which will be announced May 31) whereas four licences had been offered. Heavily indebted after sky-high bidding in the UK and in Germany, all the prospective foreign bidders had forgone bidding for a French licence. The third French operator, Bouygues Telecom, had also bowed out, condemning the high price. Faced with the dearth of candidates observed at the close of the call for bids on 31 January, the government then decided to award the first two licences this spring, and two others in response to a later invitation to tender.Laurent Fabius also excluded the prospect of a new invitation to tender for the two remaining licences being issued quickly. The majority of specialists in the sector believe that this matter will be put off beyond the crucial date of the May 2002 presidential elections. Questioned on recent information appearing in the French daily newspaper, Le Monde, according to which the procedure for the...