Australia's minimum prices for new spectrum to be auctioned are too high, and some bidders already are saying they won't be bidding bidding.
The Australian Communications and Media Authority has set the reserve price for 700 MHz spectrum at $1.36 per megahertz (MHz) per population.
Vodafone and Telstra say they won't bid at those prices. Optus says the minimum price is too high.
3G
Auctions held recently in the Netherlands saw prices higher than anticipated, which as service providers worried a ruinous bidding war could result. That was a near-disaster when the same thing happened during 3G auctions.
European mobile phone companies spent $129 billion six years ago to buy 3G licenses that were expected to trigger new revenue-generating services. As recently as 2006, though, that had not proven to be the case.
Service providers cannot afford to make that mistake again.
Sunday, December 16, 2012
What If They Hold a 4G Auction and Nobody Bids?
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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