April2000 - British Auction Fetched $34b - $50b in Today’s Money

April2000 - British Auction Fetched $34b - $50b in Today's Money

 April2000 - British Auction Fetched $34b - $50b in Today's Money

 

Everyone Telecom and Supreme Court Judges with Computers and Internet also had access or could knew about British Auctions. In 2000 itself International practice was to go for Open Bidding and it lasted 160 rounds.

 

British population is just 60m compared to 1200m for India and 300m middle class.

 

Indian auctions could have fetched $200b at least in 2000-04. Indiaadopted outdated technology that is additional loss of $100b.

 

[In October 1999, one of Germany's two largest mobile-phone operators, Mannesmann, took over Orange for almost $35 billion. >> In the event, Vodafone took over Mannesmann for about $175 billion. There is no evidence that this led to any inefficiency in the auction bidding. After the auction, Orange was bought by France Telecom for over $40 billion.]

 

It is also interesting third ranked operator Orange was taken over by German company for $

 

But tragedy is that India is managing with 2G even today – UK auctioned 3G in 2000.

 

Roughly Rs.5,00,000 crores worth 2G investment from 2000 due BJP Pramod Mahajan Corruption resulted in India buying Substandard and Outdated technology.

 

It was Vajpayee, Advani and Gen Kandhori who indulged in Open Loot in NHAI projects and posted SK Dubey to Koderma, Jharkhand to be murdered.

 

Bhushan and Kejriwal sabotaged Supreme Court Proceedings and delay CBI investigation in to SK Dubey murder.

 

Supreme Court didn't convict even OPEN loot.

 

Ravinder Singh

Fenruary03, 2012

 

http://economics.ouls.ox.ac.uk/11891/1/biggestsept.pdf

Abstract: This paper reviews the part played by economists in organizing

the British third-generation mobile-phone licence auction that concluded

on 27 April 2000. It raised £22,5billion ($34 billion or 2.5 % of GNP) and was widely described at the time as the biggest auction ever.

 

The first round of the auction took place on 6 March, 2000, when a little more than the sum of the reserve prices £500 million($750 million) was bid. The first withdrawal came in round 94 as the price of the cheapest licence passed £2 billion ($3 billion), and four more withdrawals followed almost immediately. However the last three withdrawals took longer. The final bid took the cheapest licence price past £4 billion ($6 billion), and after 150 rounds of bidding the auction finished on 27 April, 2000 with a total of about £22.5 billion ($34 billion) on the table–five to ten times the initial media estimates.

 

 

In 1997, when our advice was first sought, four mobile-phone companies operated in Britain using "second-generation" (2G) technology. The incumbents were Cellnet, One-2-One, Orange, and Vodafone. British Telecom (BT), the erstwhile state-owned monopolist privatized under Mrs. Thatcher, held a 60% stake in Cellnet which it increased to 100% in 1999.) The proportion of the population using a portable phone was rising rapidly and, as in other parts of the world, the cellular telephone industry was regarded as a runaway success; the industry was set to become even more important with the introduction of the "third generation" of portable telephones that would allow high-speed data access to the internet.

 

Licence A is the largest, comprising 2x15MHz of paired spectrum plus 5MHz

of less-valuable unpaired spectrum. Licence B is a little smaller, comprising 2x15MHz of paired spectrum, but no unpaired spectrum. Licences C, D and E are all roughly the same, each comprising 2x10MHz of paired plus 5MHz of unpaired spectrum, but these three licences were thought substantially less valuable than the other two.

 

The four incumbents won licences, with Vodafone paying about £6 billion ($9 billion) for licence B, compared with the £4 billion ($6 billion) or so paid by the other incumbents for each of licences C, D and E. The reserved licence A was taken by the entrant TIW (largely owned by Hutchinson Whampoa) for about £4.4 billion ($6.6 billion).

 

Not only are the incumbents' 2G businesses complementary to 3G, but their costs of rolling out the infrastructure (radio masts and the like) necessary to operate a 3G industry are very substantially less than those of a new entrant, because they can piggyback on their 2G infrastructure.

 

6.3. The Vodafone-Mannesmann Takeover

 

In October 1999, one of Germany's two largest mobile-phone operators, Mannesmann, took over Orange for almost $35 billion. >>>>>>

 

In the event, Vodafone took over Mannesmann for about $175 billion. There is no evidence that this led to any inefficiency in the auction bidding. After the auction, Orange was bought by France Telecom for over $40 billion.