IHS Global Insight Perspective | |
Significance | The French government has said that it wants at least two network operators to bring ultra-high-speed mobile broadband to 99% of the population within the next 15 years. |
Implications | Although no details of the tender process or pricing have been released, the French minister for industry, energy and the digital economy has said that the 800-MHz frequencies are "precious and rare, and therefore expensive". |
Outlook | The increasing demand for mobile broadband means that the new licences are likely to contain network-coverage targets, which operators will be expected to meet. |
The French telecoms regulator has granted the first temporary licence for a trial of Long-Term Evolution (LTE) in the 800-MHz "digital dividend" band, in preparation for the auction of the spectrum due to be held in the first half of next year.
Telecoms regulator Arcep did not specify who the licence was issued to. However, it added that it had already issued similar licences for trials of LTE in the 2.6-GHz band, also due to be tendered next year, and is processing further applications for tests of the technology in the 800-MHz spectrum.
Arcep has now stated that it is willing to examine all requests to conduct trials in the 800-MHz band submitted before 15 January 2011. The deadline for requests to perform trials using the frequencies in the time division duplex (TDD) portion (2570-2620 MHz) of the 2.6-GHz band, due to be auctioned after the 2.6-GHz-band frequency division duplex (FDD) (2500-2570/2620-2690 MHz) and 800-MHz spectrum, has been extended by several months.
Meanwhile, the French minister for industry, energy, and the digital economy, Eric Besson, has said that he wants the mobile operators to cover 99% of the country with LTE or 4G networks by 2025, according to the French radio station Europe1.
Outlook and Implications
- Digital Dividend Auction Imminent: France has recently outlined plans for the 800-MHz digital dividend auction slated for next year, saying that the successful mobile operators will be expected to grant more MVNO permissions if they secure licences (see France: 30 November 2010: France Outlines Plans to Boost MVNO Presence As Part of LTE Licence Terms).
Besson has cited three main objectives that will be included in the licence conditions: territorial coverage, improved competition, and increasing spectrum value for the state. He added that for the first time, the licence conditions are likely to include network-coverage obligations on a regional level. While no details of the tender process or pricing have been released, Besson said the 800-MHz frequencies are "precious and rare, and therefore expensive". The spectrum is expected to be awarded to the winning bidders in the first half of 2011, paving the way for the introduction of ultra-high-speed mobile services in the next few years.
- Licences Expected to Contain Coverage Conditions: Besson said he wants at least two network operators to bring "ultra high-speed" (LTE or 4G) broadband to 99% of the French population within the next 15 years. The regulator says that "several dozen" trials of next-generation technology in the 2.6-GHz band have already been authorised, and it will continue to issue temporary authorisations while also guaranteeing that candidates who apply for long-term licences in the 800-MHz and 2.6-GHz bands will have complete details on all of the authorised trials, prior to the application deadline, expected to be set early next year.
The pressure on France's existing 3G networks continues; huge increases in mobile broadband and data use threaten to overwhelm capacity in the busiest regions. Incumbent France Telecom, which operates under the Orange brand, is calling for internet firms such as Google that generate lots of online activity to share the cost of updating networks (see France: 19 November 2010: France Telecom Calls for Internet Providers to Pay for Network Usage). The increasing demand for mobile broadband means that the new licences due to be issued next year are likely to contain network-coverage targets, which operators will be expected to meet.
- Competition Continues to Increase: France's mobile operators are cutting their prices as competition in the market reaches fever pitch —something that is expected to peak when fourth 3G licence holder Iliad's Free enters the market in 2012 (see France: 13 October 2010: France Dismisses Mobile Operator's Appeal over Iliad Licence Award). Free says that construction of its new mobile network is going well, but it has still not reached a network-sharing deal with one of its larger rivals to allow it to launch in 2012. However, Iliad's chief operating officer Thomas Reynaud has recently stated that he is confident it can reach an agreement, despite all of France's existing 3G licence holders stating that they are not interested in any such deal (see France: 19 November 2010: Iliad Upbeat About 3G Roaming Agreement Prospects).