Britain expects to raise some 3.5 billion pounds ($5.6 bln) from a fourth-generation mobile spectrum auction scheduled for early next year, the Treasury said on Wednesday.
The figure was outlined in finance minister George Osborne’s half-yearly budget statement.
“We assume that the government will raise an extra 3.5 billion pounds from the 4G spectrum auction,” the Office for Budget Responsibility, Britain’s independent budget watchdog, said in its economic and fiscal outlook.
Britain’s media regulator set out the long-awaited plans for the auction in November. Prospective bidders are be able to submit their applications with an initial deposit from December 11, with bidding beginning in January and licences granted in February and March (Full Story).
Regulator Ofcom has said the reserve prices for the spectrum would be a combined total of 1.3 billion pounds.
Mobile operators Vodafone VOD and Telefonica O2 are keen for the auction to begin after market leader EE, owned by France Telecom and Deutsche Telekom, rolled out its new 4G service to great fanfare in October.
Vodafone Group Plc (ADR) (NASDAQ:VOD) will see significant new revenue from 4G services and the stock is cheap.
|Bid / Ask||26.01 / 26.02|
|Day Range||– – –|
|Vol 1d v 5d||721,070.00 v 9.91M|
DR : VOD.O
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Shayne Heffernan Ph.D.
Economist/Hedge Fund Manager
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals. He is also an active consultant working with Corporations around the World.
He is recognized as one of the leading Economists in South East Asia, as well as the preeminent authority on ASEAN. His opinions and forecasts are widely read by decision makers in the region and Internationally.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
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