France Delays 4th 3G Telecom License Tender - Official

PARIS (AFP)--France has delayed a tender for a fourth mobile phone license in order to examine the conditions, a top official said Wednesday, as existing operators warned they could go to court if the price were set too low.

"We have decided, just to be absolutely sure on this point, to request a new study on the total price of the license," French Secretary of State for Industry Luc Chatel said in an interview on Radio Classique.

"We have asked the commission in charge of evaluating state assets to check that this amount corresponds clearly to the price of the fourth license," Chatel said, adding the tender would take place "by the summer."

Chatel has said that the license will cost EUR206 million.

Existing operators SFR, Orange and Bouygues SA (EN.FR) - who paid far more for their licenses - warn the bar shouldn't be set too low for new entrants and have held out the possibility of court action if the financial conditions are deemed to be unfair.

French group Iliad SA (ILD.FR), which owns the popular Internet access provider Free, has already said it will be bidding for the third-generation mobile network license, while Virgin Mobile says it is looking into a possible bid.