Survey: Government May Spend $3 Billion on Phone Spectrum Auctions

[Sydney, AUSTRALIA] Senior Australian telecommunications executives expect the Federal Government to pay up to $3 billion in upcoming mobile phone spectrum auctions, according to a survey released by consulting group Deloitte Touche Tomatsu.

The Telecommunications Carrier Competition and Outlook Survey Report found 80 percent of respondents estimated proceeds from the spectrum licence auctions (3G, datacasting and 3.4 GHz) would fetch up to $3 billion after the original 2000/01 Federal Budget anticipated figure was increased earlier this year.

“The government’s chance of receiving a windfall much greater than the $2.8 billion announced in the recent federal budget is considered unlikely by most, especially if the New Zealand auctions are an indication,” the report said.

“On the other hand, recent European auctions were highly successful in densely populated countries such as the UK and Germany,” it went on.

The independent survey was conducted in June to assess the direction and response of the telecommunications industry in Australia. The survey aimed to assess how competition in the industry has been shaping three years after the Telecommunications Act 1997.

The survey was mailed out to chief executives and senior management teams in all
Australian carriers and completed anonymously.

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