Users likely to pick up the tab after £31bn German 3G auction



After 14 days and 173 rounds of bidding the German auction of third generation (3G) mobile licences has ended with six telecommunications groups paying...



After 14 days and 173 rounds of bidding the German auction of third generation (3G) mobile licences has ended with six telecommunications groups paying £31bn.

The high price is likely to have an impact on UK corporate users with European operations.

The successful bidders are already looking to pass the costs on to users. Deutsche Telekom said, "This insane bidding means that the new generation of wireless services will get off to a start with a mortgage that consumers will have to pay for in the end."

However, UK users are being urged to demand cheaper prices, particularly mobile roaming services.

All four UK mobile operators have won German 3G licences as part of the successful international consortia. The Telecommunications Users Association (TUA) said this should lower prices in the future.

The TUA's argument is likely to become stronger if UK operators decide that they cannot afford to lose out in forthcoming spectrum auctions in other countries including Italy, France and Spain.

TUA chairman Bill Mieran said the issue of current roaming costs had already been the subject of a European Commission inquiry, and it will not go away.

Mieran said that companies such as BT had shares in many of the companies which it claimed charged heavily for mobile international roaming and he said BT could probably charge less if it wanted to.

Read more on IT legislation and regulation

SearchCIO
SearchSecurity
SearchNetworking
SearchDataCenter
SearchDataManagement
Close