Thursday, April 7, 2011

Mobile Phones: Orange rivals fear that takes all the 4G

Orange competitors are banding together to demand that the state protects them at the auction for 4G mobile frequencies, reports news agency Reuters, Thursday, April 7. They fear that the French incumbent, richer, takes all do to strengthen its leadership, according to several sources familiar with the matter.

"In a nightmare scenario, France Telecom would buy back the packet and half of frequencies," said one source interviewed by Reuters. 4G, or fourth generation technology, should enable mobile operators to offer faster speeds to accommodate the spread of smartphones and the explosion of data exchange through email, video and mobile Internet.

The allocation of this spectrum for future generation will play a role in the competitive landscape of the French telecoms. Experts estimate that some operators may disappear if the competition was so restrained. ESTABLISHMENT OF A PURCHASE LIMIT? SFR, Bouygues and Free calling on the government, which sets the terms of bidding for these licenses, establishing protection mechanisms, such as mandating the sharing network.

But France Telecom's competitors require particularly as France takes on such auction held recently in Germany, Spain and the United Kingdom, to establish limits that would prevent purchase of one group of kick ass. Another source familiar with the matter, although the state will introduce such limits, but lest too severe conditions weigh on revenue auction, it could place too high for them to be truly protective.

"With half of the frequencies, you recreate an already dominant position," warned his side a third source. A spokeswoman for Orange declined to comment on the bidding process. In response to public consultation launched by Arcep, Orange had said in September 2010 that the government should avoid multiple conditions, such as ceilings or the obligation to share the spectrum with its rivals.

The allocation of new frequencies, which must be done this summer, took over a month late amid disagreements between the government and the telecoms regulator, Arcep. The state hopes to raise at least € 2 billion of the auction, highlight some of these sources.

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