By Lisa Burroughes, 30 May 2000 15:05
NEWS The French government has ruled out the option of auctioning its third-generation UMTS licences. The decision follows mounting pressure from the French telecoms regulator ART and national operators to choose an alternative method for distributing the four licences, amid concern that a UK-style auction would strangle the competitiveness of the market. Erkki Liikanen, EU commissioner for enterprise and IT, threw his support behind the argument last week when he said spectrum auctions should be discouraged as they work against the objectives of creating a level playing field and guaranteeing services at affordable prices. France's Industry Minister Christian Peirret is now thought to be favouring the 'beauty contest' method, which judges each operator's proposals for services on a UMTS network on its merits and awards the licence to the most attractive. Reports suggest that Peirret is also considering increasing the number of licences awarded. A final decision is expected by mid-June.
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