French regulator calls for 3G beauty contest over auction

A beauty contest with an entry fee is the preferred method for distributing the French UMTS licences, rather than an auction as seen two weeks ago in the UK.

That's according to Jean-Michel Hubert, president of ART, the French telecommunication authority.

ART joined the debate over the allotment of UMTS licences in France following the government's announcement a decision over the method of the third generation (3G) licence allocation would be reached mid June.

Hubert claimed bidding could lead to operators spending more than planned with customers or shareholders having to foot the bill.

A spokesman for ART said the organisation had been in discussions with French telcos for many months.

He said: "We have worked closely with all the sectors in the market and all but one company was against the auction. Third generation is a new technology, but it is not a new market. The auction procedure does not give much choice for the players in the market. It gives a financial criteria but does not guarantee the best service for citizens."