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back to article Telstra is filthy about being barred from spectrum auction

Australia's dominant carrier Telstra has expressed its displeasure with yesterday's decision to exclude it from an auction for some useful-for-4G spectrum in the 700MHz bands, in the name of enhancing competition. “We are disappointed with the decision to limit how much spectrum any party can hold in the 700 MHz band,” a Big T …

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  1. Anonymous Coward
    Anonymous Coward

    Money raised for taxpayers?

    Confused....

    How does Telstra being allowed in this auction, raise money for tax payers? Given that they would be most likely spending tax payer $ handed over to them by the government.

    Telstra should try standing on their own feet like other telecommunications providers, who have to compete with government funded and favored competition.

    0 2 Reply
    1. Chris 155
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      Re: Money raised for taxpayers?

      By leaving one of the major bidders out you reduce the price which will be paid for the spectrum, potentially dramatically. The fact that Telstra have received payments from the government here for other purposes is irrelevant.

      The question essentially comes down to whether setting a 20% maximum on the amount of this particular chunk of the spectrum is worth the lost revenue from the sale of this spectrum. This revenue loss will be significant as after Telstra, Optus and Vodaphone there really isn't anyone who is going to spend a lot of money on Australian spectrum.

      In essence is it better to have one or two providers pay a lot of money for the spectrum and be able to deliver better services because they have more bandwidth available or to have 5 or more owners of the spectrum, with at least some of those companies paying very little and likely being unable to deliver much in the way of services.

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