Bouygues drops out of 3G auctions

Bouygues has announced that it will not be participating in the bidding process for French UMTS licences, France's third-largest telco announced yesterday.

A company statement said: "Bouygues considers that the conditions of the call for bids is not persuasive." Acquiring a UMTS licence would require "an unreasonable financial risk," it continued. Martin Bouygues has been a vocal critic of the licencing process, particularly the high cost. Last week, Telefonica and Suez Lyonnaise des Eaux withdrew from the contest, citing high licence fees. The two remaining applicants, France Telecom and Vivendi-controlled SFR, are now bidding for four licences - leaving the process on the verge of collapse. We'll have more on this story later...