It is a tough task introducing more competition in France. There is always the chance that the best of intentions are soured by unexpected repercussions. Take the angry dairy farmers who sprayed gallons of milk over the facades of supermarkets recently in protest at falling prices. Rightly or wrongly, many blame the government’s attempt to open price competition between big supermarket chains for the farmers’ plight.

Now it is the turn of the telecommunications industry as France prepares to sell its fourth mobile licence in an effort to inject a dose of extra competition and bring down prices. The market is dominated by three big players: incumbent France Telecom, Vivendi’s SFR and Bouygues. In reality it is the incumbent’s mobile arm Orange that holds the whip hand, with about 44 per cent of total subscribers, while alternative suppliers have just 5 per cent.