French UMTS licence money will boost pension fund

NEWS The FF130bn raised from the sale of the French UMTS licences will be placed in a pension fund according to French Finance Minister Laurent Fabius. Speaking yesterday in the National Assembly Fabius said the majority of the money would go into the fund while the remaining amount would be used to pay off the country's deficit. The minister also spoke out against his critics who claimed the FF32.5bn entry fee into the UMTS beauty contest was too high. Jean-Marie Messier, head of media, telecoms and environment group at Vivendi, had called the price "unreasonable." Vivendi's telecommunications arm Cegetel is expected to bid for a licence. In response, Fabius said: "That's just the corporate view, if he says it is too high then he will not be a candidate for a licence, but then if he is a candidate it proves the price was not unreasonable."