France out to screw mobile operators!!!
France takes a risk with mobile recovery
By Paul Betts
Financial Times; Mar 16, 2004
A battle royal is erupting over the financial terms the French Treasury is planning to impose for the renewal of GSM mobile phone licences. The issue is not only causing heartache to French mobile operators, but palpitations throughout the European telecoms sector.
Heinrich von Pierer has written to Francis Mer, the French finance minister, warning that Paris risks undermining the recovery in the European mobile industry if it taxes the new licences unreasonably.
The Siemens boss said France had a "special responsibility" because it would be the first EU country to renew older GSM licences. The decision, due this month, could set the tone for other countries just as keen as Paris to find fresh funds to finance their deficits. Nokia is also lobbying Brussels and calling for a common European approach.
So far, Mr Mer seems intent on going ahead with a scheme to tax French operators with a progressive levy of up to 5 per cent of annual turnover. Orange (France Telecom) and SFR (Vivendi Universal) complain that the proposal favours Bouygues Telecom, their smaller rival. Equipment manufacturers, distributors and consumers fear a stiff levy will be passed on to phone users, damping the market.
France was wisely the first to decide three years ago to slash the exorbitant fees it originally charged for UMTS licences to give the new technology a chance. Now it wants to kick the proved older GSM system in the teeth. Where is the fabled French industrial planning in all this? |
