3G auction expectations may not be met

According to a major investment bank the Federal Government's auction of 3G mobile spectrum licences – which will enable phone companies to provided Internet based services to wireless devices such as mobile phones – is more likely to fetch $1 billion instead of the $2.6 billion anticipated. Seven companies in total comprised of five Australian telcos and two foreign companies have registered to bid for the licences. However, it is predicted that a lack of major overseas players in the auction will not create the competition needed to meet expected prices.

‘3G auction lacks spice', The Daily Telegraph, 15/02/01, p 10.