China's Cell Phone Pirates Are Bringing Down Middle Eastern Governments

Re:China's Cell Phone Pirates Are Bringing Down Middle Easte... by wisty on Wednesday June 15, 2011 @03:59AM (#2656352)

I'm all for non-profit use of spectrum. The government could have given steep discounts to companies planning to offer discounted deals to the poor. Instead, they've most likely given steep discounts to companies who will squat on the spectrum till they are bought out by whoever expects to get the most profits (and convince banks to lend them the money).

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Re:China's Cell Phone Pirates Are Bringing Down Middle Easte... by barrkel on Wednesday June 15, 2011 @04:50AM (#2656427)

I'm not arguing for non-profit use of spectrum. I think the most profitable use of the spectrum should be made. My point is that the government getting a windfall from this would put a price floor on the market, i.e. the cost of capital needed to purchase a license to the spectrum. That price floor would mean servicing the poor would have to be done by discounting, rather than mere price competition.

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