PARIS -(Dow Jones)- French telecommunications regulator Arcep Monday recommended that all or part of the frequencies for a fourth third-generation mobile operator in France be set aside for award by public tender.
In July, France's antitrust body Conseil de la Concurrence released a study criticizing the level of competition in the French mobile-phone market. At the time, it said the award of a fourth 3G license would create "a positive dynamic" in the market.
Arcep, however, didn't specify Monday whether it recommended awarding all available frequencies to one new entrant or dividing the frequencies into several packages, some of which would then be reserved for new entrants.
Nor did the regulator provide any details of the financial criteria linked to the attribution of frequencies to a new entrant to the mobile market.
During the public consultation launched by Arcep last June the scenario that involved dividing the frequencies into several packages open to all operators was rejected unanimously, the regulator said in a statement.
The regulator said it gathered opinions on the matter from twenty-three different parties during the public consultation phase.
The French government will soon hold a parliamentary debate on the subject and will take into account Arcep's recommendations in its decision.
Arcep also said that a tender offer was needed to attribute the third-generation frequencies.
The three main mobile operators in the country are France Telecom's Orange brand, Bouygues's Bouygues Telecom, and Vivendi's SFR.
Iliad SA (403591.FR) confirmed its interest in a fourth mobile phone license in June after Arcep had initially rejected its application for failing to meet the necessary financial criteria.
-By Ruth Bender, Dow Jones Newswires; +33 1 40 17 17 40; ruth.bender@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 22nd September 2008