[LINK] NBN and Austar

[Birch, Jim]

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



CONFIDENTIALITY NOTICE AND DISCLAIMER

The information in this transmission may be confidential and/or protected by legal professional privilege, and is intended only for the person or persons to whom it is addressed. If you are not such a person, you are warned that any disclosure, copying or dissemination of the information is unauthorised. If you have received the transmission in error, please immediately contact this office by telephone, fax or email, to inform us of the error and to enable arrangements to be made for the destruction of the transmission, or its return at our cost. No liability is accepted for any unauthorised use of the information contained in this transmission. If the transmission contains advice, the advice is based on instructions in relation to, and is provided to the addressee in connection with, the matter mentioned above. Responsibility is not accepted for reliance upon it by any other person or for any other purpose.