[LINK] NBN and Austar

Birch, Jim Jim.Birch at dhhs.tas.gov.au
Mon Feb 21 10:33:38 AEDT 2011

Tom Koltai wrote:

> Opportunity cost on the Austar Spectrum for 15 years = $413,745,424
> Annual Value of Spectrum (flat today dollars) therefore =  $27,583,028

> Value of Spectrum left to run = $110,332,113

Yeah, but:

The purchase was speculative for Austar and they didn't use much of it.
Not so good.  The NBN has an application waiting.  Didn't someone say
that value and price aren't identical.

In addition, there's a significant "possession" element: once NBN have
it, they should be able to renew the licence in a post-GFC financial
environment where people aren't throwing around hunks of magical money,
quite likely with a deal rather than an auction.  They can put a good
case that their spectrum is national asset that shouldn't go to the
highest bidder, potentially be used to in a rent-seeking racket against
them.  They wouldn't auction other key service spectrum, would they?  I
guess that NBN Co will start pushing for renewal immediately - if they
haven't already - and the current government would have every reason to
bed this down quickly and quietly.

- Jim


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