French operator takes UMTS complaint to Brussels

French mobile phone operator, Bouygues, has lodged an official complaint with the European Commission over the make-up of the latest batch of UMTS licences set to be issued in continental Europe.

Belgium, Germany and the Netherlands plan to follow the UK auction third generation mobile spectrum while the French government has opted for a 'beauty contest' where winning operators are expected to pay FF32.5bn (£3bn) each.

According to Bouygues, both contravene a 1997 EC directive on licences that states while nations can levy fees from operators "in cases of rare resources", this must be done in a non-discriminatory way that fosters competition and innovation. Company representatives argued this week that prices being paid reflect the relative stock valuation of the operators rather than the likely value of the new activity.

But the governments of Belgium, Germany and Holland are likely to forge ahead with auction plans following the success of bidding for UK licences which generated a total of £22.5bn. Only in Finland were licences given away for free.