European court rejects Bouygues UMTS licensing challenge (France)The European Court of First Instance has rejected French mobile operator Bouygues Telecom’s attempt to overturn a European Commission decision on UMTS licensing. The company had challenged a decision by the French government to reduce the licence fee for rivals Orange and SFR, originally set in 2001 at EUR 4.95 billion for 15 years. In 2001, the price was reduced to EUR 619 million and the term extended to 20 years, while the percentage of revenue generated from 3G services to be paid was increased. Bouygues complained to the European Commission that this gave the Orange and SFR an unfair competitive advantage and constituted illegal state aid. The operator argued that it was entitled to a lower price and more relaxed terms because it took the risk of not taking part in the initial licensing, whereas Orange and SFR accepted the initial conditions. The Commission rejected the complaint and now the court has now backed the decision, finding that the new licensing system was not discriminatory toward Bouygues Telecom.
