Quote:
“The National Audit Office (NAO), which is responsible for scrutinising public spending on behalf of Parliament, has confirmed that it will investigate whether or not Ofcom’s underperforming auction of the 4G (LTE) based 800MHz and 2.6GHz mobile broadband spectrum has delivered “value-for-money“.
The government originally estimated that the auction would rake in around £3.5 billion and Ofcom revealed last month that Mobile Networks Operators (MNO) had made total “theoretical” bids of roughly £5.2 billion (here). But despite this the final tally came in at a decidedly lower than expected £2.368bn.
Apparently the reason for this is because Ofcom had adopted a more secure auction strategy, which employed a second bidder rule. In other words the winning operator only had to pay slightly more than the next highest bidder in order to obtain their slice of the spectrum. On top of that Three UK only needed to pay the reserve price for its slice of the 800MHz band.”
“The National Audit Office (NAO), which is responsible for scrutinising public spending on behalf of Parliament, has confirmed that it will investigate whether or not Ofcom’s underperforming auction of the 4G (LTE) based 800MHz and 2.6GHz mobile broadband spectrum has delivered “value-for-money“.
The government originally estimated that the auction would rake in around £3.5 billion and Ofcom revealed last month that Mobile Networks Operators (MNO) had made total “theoretical” bids of roughly £5.2 billion (here). But despite this the final tally came in at a decidedly lower than expected £2.368bn.
Apparently the reason for this is because Ofcom had adopted a more secure auction strategy, which employed a second bidder rule. In other words the winning operator only had to pay slightly more than the next highest bidder in order to obtain their slice of the spectrum. On top of that Three UK only needed to pay the reserve price for its slice of the 800MHz band.”
http://www.ispreview.co.uk/index.php...m-auction.html
