The threat of an injunction from the French government, forcing the company to pay the outstanding amount of $568m and the suggested removal of the license, appears to have done the trick, although the depreciation in the value of the license since its award in the early part of this year has offended SFR’s owners Vivendi along with the owners of the other French 3G license, Orange.
Both companies expected reimbursement from a second round of license sales, or an equilevent reduction in license fees of around 40%. Although withdrawal of SFR’s license is unlikely for it will effectively create a 3G monopoly, with France Telecom at the hub.
