PARIS—The standoff between the French government and mobile-phone operator SFR, which is backed by Vivendi Universal, was at least delayed this week, with SFR paying the initial US$566 million payment for its third-generation (3G) license. SFR initially withheld the first payment for its license in an attempt to pressure the government to renegotiate 3G license terms.
However, Vivendi said it wants further negotiations on the terms of its French 3G license or additional payments would not be made. Under French rules for the award of the 3G licenses this year, the fee “has to be proportionate to the value the buyer can expect, but because of major changes in manufacturing and stock conditions, the price is now disproportionate to the value,” said Jean Marie Messier, chairman and chief executive officer of Vivendi Universal at a conference in New York this week.
SFR paid the US$566 million sum into a blocked account early this week and on Tuesday paid the government.
France had only two takers for four 3G licenses awarded earlier this year. A second round of bidding for the remaining two licenses is expected next year.
Both SFR and France T
