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Europe divided on revising 3G license fees

BRUSSELS, Belgium-International press reports are stating Europe is divided on the issue of whether to allow European third-generation license winners to have revised fees and terms for the licenses they paid heavily for last year. Germany, which drew about $46 billion from mobile carriers, and the United Kingdom, which won a combined $34 billion, are the markets gaining the most attention because carries paid the most for 3G licenses in those countries.

The European Commission has suggested that governments ease the license terms in light of the heavy debt loads carried by operators and concerns about Europe’s future competitiveness in the industry. However, easing the terms would allow an unfair approach in the entire European market, other officials said.

The Financial Times reported that Germany’s telecom regulator RegTP has asked the six license winners to submit cooperation plans for building out networks, which could spur consolidation in the market. In addition, Reuters reported that BT Wireless said it has contacted other British mobile operators about sharing the cost of building out a 3G network in the United Kingdom.

The European Commission is considering whether the license periods could be lengthened, start dates could be delayed or payment schedules could be altered to help indebted carriers, a Financial Times report said.

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