Friday, April 8, 2011

4G licenses: tender in May, the end of 2011 frequency allocation

Permits for the fourth generation (4G) mobile phone will be a tender in May and frequencies should be assigned by the end of the year, said, Friday, April 8, Jean- Ludovic Silicani, president of the Telecommunications Regulatory Authority (ARCEP). "We're finalizing with the Government under the call for applications.

If things go normally, it is likely that by early May, the procedure could be launched, which would award the prizes (from frequency) of 2.6 gigahertz and 800 megahertz by the end of 2011, "said Mr. Silicani news conference. The fourth generation (4G) mobile telephony is expected to gradually take over to 3G.

It promises, in theory, speeds above 100 megabits per second, allowing much faster access to the Internet on mobile phones. Mr. Silicani stressed "the need for these frequencies are sold at a satisfactory level. They are a scarce and therefore very expensive, that the State does not sell out," he said.

"The government has cited in the debate on finance the figure of 2 billion euros, this means is that it expects revenue to that height," recalled the president Arcep. A STRATEGIC MARKET The four main actors who share the French market for fixed and mobile - Orange, SFR, Bouygues Telecom and Free - can answer the call for tender for new frequencies, as candidates who would no operators in the telecommunications sector.

According to sources close to the case, competitors of Orange are working together to request that the state protects them at auction, for fear that the incumbent, richer, does takes all. To ensure competition, the state could use the protection mechanisms used elsewhere in Europe, such as the obligation of sharing network or the ceilings of purchase.

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