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Thanks for the reply.

The life of the license means very little when the churn rate is so high. The typical customer will never stay with one provider long enough to cover the license fee, let alone infrastructure, marketing, R&D costs and so on.

That is the reason I was mentioning the pay back time.

As to faith in the free market - yes I have faith in it. But most governments place limits on market freedom, or was I mistaken about the recent Microsoft trail?

One pundit pointed out that in both the UK and German auctions there were participants bidding who only wanted to bid up the price. They did not intend to get licenses, but they wanted to make it damned expensive for those companies who had to have 3G licenses in their own countries.

If you really want totally free markets, then you must accept infinite consolidation to the point that there is one supplier for each good and service. That is the end result of survival of the fittest. Perhaps you know some dinosaurs that survived.

I am afraid that the suicidial bidding will mean one of two things:
1. There will be consolidation whereby the "winners" in this bidding war are so cash strapped that they are taken over (with their licenses) for a fraction of their value today. OR
2. The very governments that are so gleefully filling their coffers with license fees may have to bail out their bancrupt 3G providers.

I do not think that either of these scenarios benefits the consumer, the governments, nor the 3G license holders.

It appears that Asia will probably award licenses on technical merit.

Those are my thoughts.

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