"We need a European policy" to save the telecom industry in the 15 nations that comprise the EU, Chirac said at the end of a two-day summit of European leaders. France has asked the European Commission to come up with proposals for a new summit in March of next year.
Chirac complained about the billions of euros companies had paid in auctions for next generation mobile phone licenses.
The auctions were scandalous, he said, and they imposed a heavy financial burden on the EU's telecom companies.
European telecom companies, "which were the leaders in the world," now "risked" losing that position, Chirac explained, blaming the debt left after the auctions for costing 200,000 jobs.
Chirac didn't offer any specifics on what type of aid program he wanted. "I don't want to prejudice any decisions," he said. "But Europe must react."
France Telecom SA has been one of the companies hit hardest by the slump in the sector.
The company's net debt stood at 70 billion euros ($68 billion) at the end of June, due mainly to the huge cost of 3G wireless licenses France Telecom and its rivals bought during the height of the telecommunications boom.
European operators spent around 120 billion ($116 billion) on the licenses and could spend another 100 billion euros ($97 billion) to build their 3G networks, even though it's unclear whether profit from the data and Internet services promised by 3G will ever be enough to cover those costs.
The French government, which owns 55 percent of France Telecom, is considering several options to help the company overcome its troubles.
Copyright 2002. Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
