By Chris Holbrook, 25 June 2001 17:43
NEWS Erkki Liikanen, European Commissioner for IT, has admitted the allocation processes for European 3G licences was fundamentally flawed. Liikanen said a lack of central regulation, with countries setting their own criteria for allocation, had been a major stumbling block - suggesting the whole 3G bidding process was flawed right from the start. Liikanen said: "Next time all conditions regarding the issuing of licences should be fixed before the first auctions start following a thorough consultation with EU member states." Liikanen added that he welcomed operators to share networks to cut costs as long as it was in the competitive interests of customers. He also said the licence periods should be shorter. Jake Saunders, European director for Strategis Group, welcomed the acceptance of greater participation by the commission and cooperation between the operators. However, he disagreed on the idea of shorter licences - especially in light of the huge sums paid for the 3G licences. Saunders said: "A shorter period would limit the potential of operators to gain payback and make a profit."
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