French state railway operator Societe Nationale des Chemins de Fer has asked the four telecommunications operators that want to use the spare capacity on its network to refine their bids, a source close to the talks told Reuters in Paris. Only two of the bidders are clearly identified – Compagnie Generale des Eaux SA with British Telecommunications Plc and Mannesmann AG, and Bouygues SA in association with Stet SpA and Veba AG. The railway company has formed Telecom Developement to market the excess capacity on its network and a final deal is expected before the end of the year. The network consists to 5,000 miles of fiber optic cable, which is to rise to 7,000 to 7,500 miles within three or four years.
