A N N U A L R E P O R T - Bouygues

19.3. Other commitments
19.5. Contingent assets and liabilities
Commitments given
GSM licence
UMTS licence
Bouygues Telecom has a GSM licence which requires compliance with a number of
obligations; the company is in compliance with all these obligations.
This licence is due for renewal in 2009.
The UMTS licence awarded to Bouygues Telecom requires compliance with various
obligations, relating in particular to the pace of the roll-out, geographical coverage
and the commercial opening of the network.
In a ruling issued on 20 May 2005, the French telecommunications regulator (Arcep)
put back to 30 April 2007 at the latest the date by which Bouygues Telecom is
required to make the UMTS services covered by the licence commercially available.
Contingent assets:
Litigation
Contingent
liabilities:
Litigation
In February 2005, Bouygues Telecom instituted proceedings against Tekelec US,
the supplier of two computer servers that failed on 17 November 2004, making it
impossible for a number of Bouygues Telecom subscribers to make
or receive calls.
The case is currently before the courts of North Carolina.
Bouygues Telecom is alleging negligence by the manufacturer, and is claiming
damages of USD 80 million.
A complaint against Bouygues Telecom, SFR and Orange France relating to SMS
tariffs is currently being investigated by the French competition commission.
Blind spots
In 2002, Bouygues Telecom and the two other French mobile operators committed to
providing coverage in a number of blind spots. This commitment was set out in an
agreement signed in 2003 and amended in 2004.
The three operators are obliged to provide coverage to 3,100 communities,
representing 2,250 sites.
Bouygues Telecom complied with its obligations in respect of 2005. The programme
will continue in 2006 and 2007.
Bouygues SA
Total
12/2005 Construction Property Roads Media Telecoms & other
activities
Total commitments given 2,720 147 596 163 556 1,190 68 916 1,349 455 2,720 2,509
Total commitments received 2,132 20 579 93 515 901 24 675 1,110 347 2,132 1,924
No material off balance sheet commitments have been omitted from this disclosure, in accordance with applicable accounting standards.
under
1 year
1 to 5
years
Maturity
over 5
years
Total
Total
12/2004
19.4. Collateral given
Bouygues SA
Total
12/2005 Construction Property Roads Media Telecoms & other
activities
Mortgages secured on land and buildings, pledges
of plant and equipment 9 9 1 3 5 9 5
Pledges of securities, subordinated loans 25 7 18 18 7 25 18
Total Group 34 7 18 9 19 10 5 34 23
under
1 year
1 to 5
years
Maturity
over 5
years
Total
Total
12/2004
CONSOLIDATED FINANCIAL STATEMENTS
199