Fed: Govt may only get $1 bln in spectrum auction: Merrill Lynch

AAP General News (Australia)
02-14-2001
Fed: Govt may only get $1 bln in spectrum auction: Merrill Lynch

A leading investment bank says the federal government may only raise $1 billion from
its auction of new mobile phone licences -- well short of its $2.6 billion target.

Australia's five major mobile phone carriers registered by last Monday's closing date
to bid in next month's third generation spectrum auctions.

While the line-up includes two unexpected bidders -- CKW Wireless and 3G Investments
-- telecommunications experts say the absence of major offshore players may not create
enough price tension among the bidders.

The lack of big hitters means the federal government is less likely to achieve its
$2.6 billion revenue raising target, trimming its budget surplus.

One of those experts, Merrill Lynch, issued a report to its clients this week saying
the government might still achieve its target.

However, this will depend on strong interest from all bidders.

The five Australian operators bidding for the spectrum space are Telstra, Cable & Wireless
Optus, Vodafone, Telecom NZ and Hutchison Telecoms.

AAP RTV jph/daw/hn/jnU

KEYWORD: BUDGET SPECTRUM (CANBERRA)

2001 AAP Information Services Pty Limited (AAP) or its Licensors.