Tuesday, March 15, 2011

Licenses 4G: The Council of State disavow the government

The government plan for the deployment of 4G in the territory would suffer a serious setback inflicted by the State Council. The institution would have resolved the conflict between the government Arcep, the independent telecom regulator, giving reason for the latter, according to the letter EuroTMT.

"According to several sources converge on the State Council had given its opinion on the draft decree defining the modalities of licensing 4G and have validated the reading by Arcep law Pinta said EuroTMT. COVERAGE OF TERRITORY TO 99%? Indeed, the government wanted to sell at a high price (at least two billion euros) licenses 4G operators by not imposing a minimum coverage of 90% of the territory.

Arcep instead asserts that coverage to 99% of the territory is the main criterion in awarding licenses. The regulator wants to prevent the effect of creating new zones white 4G to replace the fiber optic Internet access in rural areas and isolated abandoned by operators due to lack of profitability.

Therefore the point of view Arcep, licenses should be sold at lower prices to encourage telcos to invest. What would make much less money for the state. If the decision of the State Council is formalized, it would be good news for operators, especially Free Mobile newcomer, who had already warned the government risks a license too expensive.

"We need the state strikes a balance between taking money from frequencies - this is normal if one occupies the public domain, it pays him - but not to handicap the players so far," said Maxime Lombardini, CEO of Iliad [whose founder, Xavier Niel, is the majority shareholder of the group Tech Buzz News] on BFM Radio.

4G licenses should be awarded this summer.

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