UPDATE: French Court Rejects Iliad's Demand For New Auction Rules
September 07 2011 - 8:42AM
Dow Jones News
France's highest administrative court Wednesday rejected a
request by French telecommunications firm Iliad SA's (ILD.FR) Free
brand to change the terms of an upcoming auction of
fourth-generation mobile frequencies.
The judge ruled that Free failed to demonstrate that the current
auction rules would hurt the French company's interests
significantly, or change the market's competitive structure,
according to a statement.
A spokeswoman for Iliad declined to comment.
Free contested the terms of the auction, arguing that requiring
an upfront payment for the licenses put companies with deep pockets
at an advantage.
Bouygues Telecom, a unit of Bouygues SA (EN.FR), as well as
several unions such as the CFE-CGC, have also filed complaints
contesting some terms of the auction. A spokeswoman for Bouygues
Telecom declined to comment on the court's decision.
Iliad and Bouygues compete with larger rivals SFR, owned by
Vivendi SA (VIV.FR), and France Telecom SA (FTE).
Obtaining 4G spectrum--which allows for faster downloads on
handsets--is crucial for operators eager to exploit a recent
explosion in mobile data traffic. Operators are due to submit bids
for the spectrum this month.
The French government is hoping to raise at least EUR2.5 billion
from the auction.
-By Noemie Bisserbe, Dow Jones Newswires; +33 1 4017 1740;
noemie.bisserbe@dowjones.com
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