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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: MikeM54321 who wrote (11097)	4/24/2001 4:15:00 PM
From: slacker711	Read Replies (1) of 12823

I couldnt seem to find an absolute answer to your question but here are some links that imply that the money has already been paid. telecoms-data.com Now the auction is over the battle begins No sooner was the tender process for the UK’s 3G licences over than the fighting began in earnest. According to the Financial Times BT and One 2 One, which won the C and D licences respectively, have complained to the UK government that payment terms are unfair. Under the rules of the licensing process successful bidders have to pay at least half the licence fee - over GBP2 billion for both BT and One 2 One - within a few days though Vodafone and Orange have a further 60-180 days’ grace because they will not be granted their licences until Orange has been split off from Vodafone. BT and One 2 One claim that the delay in payment could save their rivals up to GBP250 million in interest payments and have said that they may pursue their challenge through the courts if the government is not able to resolve the issue. With the auction euphoria over, all five winners now have to face the grim reality of finding funds to pay for their licences. Though bidders are permitted to pay in two instalments the government’s fee for choosing this option is thought to be prohibitive. Vodafone has reportedly announced a USD3.5 billion issue of notes and is also said to be pushing for a cash sale of Orange to secure a war chest for further third-generation purchases. Deutsche Telekom has said it will pay for One 2 One’s licence in cash and refinance the purchase through the bond markets while Orange has reportedly set up GBP5 billion in bank loans; TIW’s and BT’s plans have not been reported. As many of the same players will be participating in other 3G auctions across Europe analysts predict a spate of strategic alliances as companies pool funds, thus reducing the need to borrow. They also point out that the mobile industry will spend the next few months relying essentially on credit, a fact which may make other European governments, lured into changing their licensing process by the record UK offers, alter their tender documents yet again. e-businessworld.com "The government will be making a cash payment to pay down part of the national debt, which will include all of the 3G money plus a bit more. I don't have specific numbers in terms of the remaining debt, though the Chancellor said it would be 31.8 percent of the GDP (gross domestic product) as compared to 44 percent of GDP in 1997. It will be even lower in the year after that," said U.K. Treasury spokeswoman Leane Farrer. Deutche Telecom, British Telecom, and Vodafone were probably the largest bidders in the 3G spectrum auctions. Other companies (Hutchison, Telefonica and Sonera) had JV's in at least some of the markets. Slacker

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