France wants $3.5bn for 4G frequencies

PARIS: France hopes to get at least ¤2.5bn ($3.53bn) for the fourth-generation wireless frequencies it plans to grant to telecom operators in an upcoming auction, Industry Minister, Eric Besson told Le Figaro, according to a report by Reuters on Monday.

France is in the final stages of setting terms for the auction of fourth-generation mobile spectrum, which will shape the competitive landscape of Europe’s third-largest telecom market for years to come.

The government had previously said it wanted to receive at least ¤2bn from the auction but Besson said the new higher amount matched those of similar auctions the United States, Sweden and Germany.

“France must not sell its frequencies at cut-price levels,” Besson said in the interview published on Monday.

Besson added the auction would be split into several lots in order to prevent deep-pocketed bidders such as France Telecom from buying the majority of frequencies and gaining a major advantage over smaller players like Bouygues and new mobile entrant Iliad.

The 4G frequencies being sold are of two types. There are four lots up for grabs in the 800 megahertz band, which is more sought after for its ability to carry massive debits over long distances. Besson said the minimum price the government would accept for the lots in the 800 band will be ¤1.8bn.