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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: MikeM54321 who wrote (11390)6/12/2001 10:26:54 AM
From: MikeM54321  Read Replies (2) of 12823
 
Thread- As I recall we had a discussion on this thread a few months back about exactly the impact of extortion-like prices paid to governments for 3G licenses. I questioned exactly how much are really paid out....along those lines comes the following comments from Microsoft Investor writer. He also is questioning exactly how much damage the outrageous prices paid to governments for 3G licenses will ultimately be.

I figured this sort of thing may happen as the governments don't want to kill the geese that laid the golden eggs for them. -MikeM(From Florida)
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And I've already suggested that it is likely even those spectrum holders in Europe who are debt-laden, thanks to the extortionate 3G auction procedures, will see unexpected cash-flow relief in the form of long-term low-interest government loans as they head into the building phase of this rollout.

On June 5, both France and Germany provided additional relief to license winners in a process that is rapidly forcing analysts to recast their gloomy spreadsheets.

In the French case, readers will recall the collapse of the French auction, as only two of four winners were declared -- at lofty base prices -- after the rest of the field withdrew. Now comes the French government to say that it will allow a possible reduction in costs to the next two bidders, backed by a much longer (20 to 30 years vs. immediate) payback schedule.

Germany stepped up a few hours later, indicating that all license winners would be allowed to share core buildout costs (including stations, towers and antennae, surprising many), thereby reducing estimates of cost per operator by huge amounts (perhaps $12 billion in savings).
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