Monday, 19 November 2012

Ireland's bumper 4G auction impresses

Lots in the press today about Ireland's 4G spectrum being allocated. No real surprises in the winners, who were drawn from the existing network operators, but the price they paid was pretty astounding. The "on target" value of the spectrum was about EUR677 using my market model. As the link shows, Ireland achieved EUR855, 21% over the expected amount.

I suspect that recent turbulence in the ownership of telecoms companies in the country has rather inflated the bidding for what is an important asset but in a small country with limited head room for growth in its telecom market. Still, this bodes well for a good result for the UK when our equivalent assets are auctioned in 2013.

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