The call for nominations for the fourth 3G license is now over and, not surprisingly, the Iliad Group is the only one to have filed a case.
Today that has ended the call for nominations for the fourth 3G license, which should bring out a new mobile operator on the French market. And though several names have circulated throughout the few months what shall the procedure lasted only group Iliad (Free) has finally filed a case with the Arcep.
The scenario for 2007 is therefore welcome here, because Free was already the only candidate. But if his record does not reflect the financial conditions of that time, the context has changed since. In 2007, the offer was for a block of 15 MHz for which the new entrant would pay 619 million euros in the first year following the award of the license or the same conditions as in 2002 when 3G No did not exist yet.
The refusal of this scenario in 2007 prompted the government to modify the schema. After public consultation conducted by the Arcep, the French telecommunications regulator, a new approach was proposed: the entrance fee was increased to 240 million euros … but for a block of 5 MHz reserved for new entrants, the two portions of 5 MHz may be an offer from the incumbent.
If several candidates seemed more interested in this new proposal, they all withdrew gradually. At issue: the growing uncertainty regarding the deployment of new 3G network operator.
A forest of obstacles in perspective
Because since 2008, it is true that organized revolt against the base stations, including the supposed negative effects on health have led to a proliferation of appeals calling for their withdrawal, and while the issue of new regulations lowering exposure limits is sought by the associations.
If validated, the cost of deploying 3G network the new entrant could explode, some observers warn. We must also count with the reluctance of incumbents who will do anything to prevent a new player to emerge, by use but by tough negotiations to lease their networks to which the fourth operator should use the time to have its own coverage.
This means that the barriers are numerous and the consequent uncertainty. Xavier Niel and his staff have yet expressed repeatedly their intention to shake up the market, as was the case for the fixed Internet. It will take that to be reflected in the facts but the ambition to take place on the French market is there.
Free file must now be considered by Arcep to verify whether the criteria are met. Jean-Ludovic Silicani, president of the Arcep said in midweek that the decision could be made public before the end of the year if there was only one case.
But if it is actually accepted, he will probably wait until late 2011 or 2012 to see the emergence of a fourth Offers Free Mobile operator.
Tags: 4th 3G license, fourth operator, Free application, Free File, mobile operator