There was a new development in the long-running saga surrounding France’s fourth 3G license today as the French government confirmed it would break-up the license into three lots of 5MHz with one reserved for a new operator. According to a Reuters report, France’s prime minister, Francois Fillon, said today that a tender for the new licenses would launch in February, with the frequencies allotted by the summer. The French regulator, Arcep, published the results of a public consultation into the award of the fourth 3G license in September.

The French government is keen to issue further 3G licenses in order to boost competition in its domestic 3G market, which remains dominated by just three operators: France Telecom’s Orange, SFR and Bouygues. An attempt in 2007 to auction the fourth license was abandoned after Arcep received just one bid – from Iliad subsidiary Free Mobile – that it deemed was too low. lliad – France’s number two ISP – said last November it was still interested in obtaining a 3G license in the country, but did not comment on today’s development.