ARCEP publishes the results of the public consultation on the award of 3G licences in the 2.1 GHz frequency band

In a communiqué dated 30 April 2008, the government reported on the disappointing nature of the last call for candidate submissions for the allocation of remaining spectrum in the 2.1 GHz frequency band. In a letter dated 19 May 2008, the government requested that ARCEP launch the public consultation needed to begin a new awards procedure, with the goal of having the results of this consultation available by 30 September 2008.

ARCEP has today released the executive summary of and contributions to this broad public consultation that was launched on 13 June of this year. Twenty three contributions were received from a wide variety of players.

The public consultation revealed the interest of the parties, both new entrant candidates and existing operators, in obtaining access to spectrum in the 2.1 GHz frequency band.

The interest expressed by the players confirms the need for a call for candidates – which all parties agreed was urgent – to be able to lift the uncertainties created by the lack of visibility given to the spectrum allocation procedure.

Among the types of procedure that were submitted to the contributors for feedback, a system of allocating several blocks that would be open to all operators – i.e. no frequencies set aside for a new entrant – based on several types of selection criteria was rejected unanimously. The proposed alternatives were thus procedures that maintain priority access to all or a portion of the frequencies to a new entrant, based on a selection process similar to previous calls for candidate submissions.

The terms of the licensing fees, the quantity of spectrum to be reserved and the lifespan of the licences are among the central topics discussed in the different contributions concerning the format for this new call for candidates.

In accordance with Article L. 42-2 of the French postal and electronic communications code, the Authority is prepared to commence the call for candidates for 2.1 GHz frequency band licences, once the financial terms have been defined by the government, following the parliamentary debate provided for in Article 22 in the Act dated 3 January 2008 concerning the development of competition for the benefit of consumers.