yes, people will get 3g eventually – as we could all get a fixed line, eventualy, back in the good old days of the department of posts and telegraphs. however, the auction process was meant to get the telecom companies into the market quickly. in this regard, the process has failed. we’re six years on and 3g is barely here. this failure has a substantial cost to the exchequer, in terms of tax revenues forgone – so the amount trousered by the uk exchequer in 2000 needs to take into account the tax revenues lost in subsequent years.

in terms of the price – £560 per mobile telephone in use in the uk in 2000 – being passed on to the consumer, you’re right, if the 3g service costs too much, the consumer won’t pay for it. as evidences by the take up of what few 3g services currntly available.

however, the billions paid for the licenses are not just recoverable from 3g services. the are recoverable from all services provided by the telecoms companies – fixed line, mobile and roaming (they are also recoverable via hardware costs. the national audit office in the uk, in its report on the auction process, pointed this very fact out). in effect, you have all consumers subsidising the licence cost, not just 3g consumers. not really a transfer of wealth from evil corporations to the exchequer when you look at it like that, now is it? more like a transfer of wealth from consumers to the exchequer, via the evil corporations.

there is also the point that there was already an incumbent operator who, as sarah has pointed out, would have to match the price paid by the new operator: an auction in these circumstances could have been an interesting way to bankrupt not just the successful bidder, but the incumbent operator too. now that hardly seems equitable, does it? or sensible. not if you’re thinking the long terms benefits to the exchequer. but of course, you’re not thinking long terms. ypu’re only looking at the short term gain.

Let’s see, well the column will address the whole issue of the value of the licence so I won’t bother going into that.
BT bought market share, not just a licence. Remember they bought Esat Telecom, which had a 45%? share in Esat Digifone. Anyone who thinks building a fixed line business in Ireland is easy should take a look at how Smart fared. That business cost millions to build. And remember that BT bought at the top of the telecoms bubble.Eircom sold at the bottom and lost us all money. But for some reason that little fuck up doesn’t attract the same bitterness as the guy who was smart enough to sell at the right time. If suckered BT into paying far more for the company that it was worth (which he did) why don’t you say well done? Why do you say “sure anyone could’ve done that”. They couldn’t.

Conor has raised one interesting point. A lot of people DO say to me, “He has done nothing for you. You are stupid to defend him.” I say, he gave me a job. They say, he worked you into the ground. I suppose I look at it a few ways.

He DID give me a job. A really good one. In 1994 when NO ONE was offering jobs. He went onto create hundred and hundreds of other jobs in Ireland. Before he got the mobile licence he was taking huge risks borrowing money to build up the companies. The people I worked with were fantastic. It seemed most unjust to have the work that those people did thrashed in the press by rumours and allegations and the heap of rubbish some of you seem to think are facts. And yes, I felt sorry for him. Ultimately, I think if I was ever in trouble, he’s the type of guy I could call for help and it would be given. That list of people is short. He’s a friend. Of course I am going to defend him.

As to the people not getting much, the Exchequer extracted a massive windfall, effectively a massive transfer of wealth from private companies which could be used for the public good without directly taxing the people. In the billions! And people will get their 3G networks eventually. If it costs too much they won’t use them – you’re the libetarian economist here FMK, work it out. and I am not aware of any individual involved in the acquiring of a 3G license walking awy with STG300M quid.

O’Brien deserves credit, sure, for playing the playing the game well but it was dirty game to being with as it always is when there is personal influence that can be brought to bear in this great little country of ours.