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Hi bhhurd

Without wishing in any way to be disrespectful or provocative, I really must ask if yours is a typical American point of view.

America...... land of the free, survival of the fittest (in buisiness at least), minimum government involvement, winner takes all, etc. etc.

In the two examples you quote of the UK and Germany there was indeed a free and open, no holds barred, pay what you think it is worth auction. And who do you think is the better qualified to determine the true market value of these spectrum licences........the governments or the service providers? You call the prices exhorbitant.......but I suspect no matter how well informed your figures are, the bidders are better.

If you place so little store in the ability of these providers to decide for themselves the future economies of their buisness then you should, of course, stay well away from any "risky" investment in them. I don't know what these licences are really worth, and clearly the respective governments do not know either, because certainly in the case of the UK they where expecting much lower amounts.

You refer to the number of "months" to break even, but do remember that the licences in the UK run for 20 years and who can really tell what opportunities their will be for wringing revenue out of these licences over that period. These governments might not be as stupid as you think.

If I understand you point correctly, you are maybe not too concerned with mess that us poor Europeans have got ouselves into, but more with the hope that the US government doesn't do the same

Truly not wishing to be sarcastic, but it will be very interesting to see how the US deals with the same problem. As far as I can see, when the spectrum finally goes on sale over there after numerous delays, the prospective buyers may have to effectively bid for a "pig in a poke". Unless the government does something soon to regulate the situation, the service providers could face the prospect of bidding for spectrum that they have very little idea of when will be available for their use.

I can sympathise to some extent with your position, but in the final analysis my vote is ..........let the market decide.

Regards and good luck


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