By Editor on November 25, 2010 · Leave a Comment
Indian and foreign phone companies could be reportedly forced to pay more than $1 billion each to the New Delhi government after a critical audit of a controversial allocation of mobile licenses.
As per reports citing the unnamed officials, the extent of the likely commercial fall-out from growing anger over the alleged undervaluation of 2G mobile licenses awarded in 2008. The scandal has already forced the resignation of Andimuthu Raja as telecoms minister.
The report by India’s national auditor concluded that the country’s telecoms ministry allotted spectrum to existing operators Bharti Airtel, BSNL and Vodafone beyond the contracted limit without imposing any upfront charges.
The Comptroller and Auditor General of India stated that the bids involving these three companies cost the government an estimated $8 billion in missed revenues.
By Editor on September 19, 2006 · Leave a Comment
LONDON (MarketWatch) — T-Mobile USA, a unit of
Deutsche Telekom AG (DT), has won 120 mobile licenses in the U.S. with a bid of $4.2 billion, in a move that will help the company expand its presence in the important U.S. market.
T-Mobile acquired the spectrum in an auction of licenses by the U.S.
Federal Communications Commission, which was completed Monday in the U.S. The licenses are for regions across the United States and in Hawaii, Puerto Rico/U.S. Virgin Islands, Alaska and cities including New York, Los Angeles and Chicago.
The company can use the spectrum to offer either second-generation basic telephony and messaging services or third generation services, including music, TV and video. The rights to the spectrum can also be traded.
The price was largely in line with expectations and will enable T-Mobile to catch up with its U.S. competitor
Verizon Wireless, said a trader.
The trader added that Deutsche Telekom had long been seen as most aggressive participant in the auction.
At 0908 GMT, shares in Deutsche Telekom were up EUR0.06, or 0.5%, at EUR11.75.
T-Mobile USA is currently the smallest of four national operators in the U.S. and has only half the
spectrum allocation of its closest peer, said analyst Jochen Lins at BHF Bank in Frankfurt.
“Investors had already priced in the cost of the spectrum, the focus now will be on rollout costs,” said Lins who estimates a total price tag for both spectrum and a 3G network of around $6.7 billion.
He also noted that owning spectrum bolsters the overall value of an operator.
“Winning those airwaves was crucial”, said analyst Stefan Borscheid at WestLB in a note. “Unlike its three bigger competitors, T-Mobile does not yet operate a 3G network in the US.”
But BHF Bank’s Lins said T-Mobile USA may not necessarily launch 3G services in the short term as there is currently no 3G application that is a ‘must have’ for subscribers. The spectrum win “gets T-Mobile into position for the future market,” said Lins.
The FCC raised almost $13.9 billion in total from the 28 day license auction. Verizon Wireless agreed to pay $2.8 billion for 13 licenses. A consortium that includes cable giants Comcast Corp. (CMCSA) and Time Warner Inc. (TWX), along with
Sprint Nextel Corp. (S), agreed to pay almost $2.4 billion for 137 licenses.
A total of 1,122 licenses were offered and 104 bidders won 1,087 of these. The unsold licenses will be offered again in the future, the FCC said in a statement.
Source- http://www.marketwatch.com
Technorati : Deutsche Telekom, Mobile, T-Mobile, USA
Ice Rocket : Deutsche Telekom, Mobile, T-Mobile, USA
