News Burst: German 3G auction tops £22bn

The German 3G auctions are spinning out of control

Auctions in Germany for 3G spectrum licences top £22bn Tuesday forcing the German telecoms regulator to lower the increase on new bids from ten percent to five percent.

Excessive bids for licences in the UK earlier this year led experts to question the wisdom of the auction system. While the UK 3G auction created an extra £22.5bn for government coffers, experts have questioned how operators will afford adequate service standards with so much spent on the licences.

In Norway, where the spectrum is about to be distributed, the auction system has already been rejected.

Full story to follow.

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