14 DAY TRIAL // The process for the allocation of a forth 3G license in France was officially launched on the 8th of March, with candidates to submit their application until the 31st of July this year.
Just as the three other licenses, the 4th license will cost ?619 million + 1% of the service's turnover every year and the coverage terms are also the same.
According to Vincent Poulbere, senior analyst, Ovum, the new entrant should cover a minimum of 25 percent of the French population after two years from its license allocation and a minimum of 80 percent after eight years.
Several companies such as ISP Free and cable operator Noos-Numericable had indicated their interest last year but had warned that the license conditions should be relaxed for the new entrant.
Nevertheless, the government and regulator have confirmed that the conditions of the license will remain the same as in the case of the three other operators. Which is why it is very unlikely that there will be any serious applications by the 31st of July.
?Building a positive business case for a new entrant in the slowly-growing French market is extremely challenging. In theory the new entrant could lower its infrastructure costs by deploying larger cells at 900 MHz, but UMTS900 handsets won't be widely available any time soon. In France, we already know Free and Noos Numericable are interested, but they'd need financial backing?, Poulbere wrote in an article.
How many applications will be forwarded by July the 31st can't really be predicted at this point and several factors could change everything. France is set to elect a new president and government soon, following elections due in May and June. If there are no candidates for the 3G license until the end of July, the new government might change the whole procedure for a second round.