The French government wants 120 million euros for each of the two frequencies left to be sold of the fourth 3G wireless license -- the same amount Iliad SA paid for its license.

La Tribune newspaper said in an early release of part of its Friday edition that the government based the price on an economic analysis by HSBC bank. In the end, however, French telecommunications regulator ARCEP will set the price.

The fourth 3G license is split into three frequencies or blocs, one of which was specifically set aside for a fourth operator, Iliad's Free Mobile. The other frequencies are open to all of France's mobile operators -- France Telecom SA, Vivendi's SFR, Bouygues Telecom SA and Iliad.

A decision is expected in the first half of the year on the 3G spectrum, after which ARECP will start auctions of 4G spectrum. A communications committee will give its opinion in Feb. 5, La Tribune said.

Iliad has said it is interested in bidding for extra wireless spectrum, gearing up to build a national network to challenge the existing mobile operators. It obtained a licence to be the fourth wireless operator in France in December.

France Telecom has argued the price should be around 200 million euros, while Iliad wants it to be 50 million euros, media reports have said.

 source:moneycontrol