United Kingdom investigates the disappointing proceeds of 4g auction

The British government is investigating the disappointing 4g auction in that country. The auction brought converted 2.7 billion euros, 1.4 billion euros less than what was expected. The disappointment would come by the veilingmethode.

The British government had counted on a 3.5 billion pound, converted more than 4 billion euros, and is, therefore, with a setback of 1.4 billion euro now that the auction has not applied, which hoped. At the auction, where as in the Netherlands, in addition to 4g also other frequencies are auctioned, bought EE, Vodafone, O2, Three and British Telecom frequencies. EE is a joint venture of T-Mobile and Orange.

The Ofcom, the government agency that the frequencies veilde, made use of a system where the winner does not have its own bid paid, but the amount of the second highest bid plus a small little bit. The total of the bids is much higher than the final yield. The total was converted to 6,2 billion euro, more than double the current yield.

The government therefore proposes an investigation in to the execution of the auction, reports the Guardian newspaper. That research, carried out by the National Audit Office, is a so-called Value for Money-research, which is looking into whether the auction is effective set up. The 3g auction brought in early this century of 26.5 billion euros.

The result in the United Kingdom stands in stark contrast with the yield in the Netherlands. The Dutch government on a half a billion euros was calculated, came the revenue, at 3.8 billion euro. The netherlands veilde almost all frequencies for mobile networks in one time, what is the value for providers opdreef; who does not have sufficient frequencies would get would have to stop as a mobile provider.