3G sale may mean high prices for consumers

Concerns that consumers will end up paying too much for next generation mobile services have been raised by Shadow Communications Minister Stephen Smith. The Federal Government is currently in the process of auctioning 3G spectrum that will enable phone companies to provide Internet based services to wireless devices such as mobile phones. However, Mr Smith has warned the Federal Government that it should not set the reserve to recoup the $2.6 billion in funds it expects for the 3G licences as over-inflated costs could be passed on to consumers. Mr Smith also said other causes for concern are the possible stunt of growth of the telecommunications industry and the delay in getting new services to rural areas.

‘Consumers set to suffer over highly priced mobile services', ABC News Online, 27/02/01.