3G billions 'cheap at twice the price'

A member of the Orange board of directors has come out in defence of the massive fees paid for 3G licences across Europe, saying the figures represent a relatively cheap investment.

Denmark is currently starting its licence allocation process and Orange executive VP, Michael Latimer, believes it will be able to justify charging high prices in spite of the doom and gloom in the telecoms market as a whole.

However, interest in Denmark has been low. The country's auction of four licences is attracting few bids, possibly because the telcos have been put off by the problematic debts incurred by successful bidders in other countries' 3G auctions.

Market analysts believe Denmark's lack of enthusiasm for 3G licences stems from the lack of flexibility on the part of the country's Telecoms Agency, which states licence holders will be required to achieve 80 per cent coverage of the population by 2009. In addition, the remaining 20 per cent are the only holders allowed to enter into any form of network share.

Interest in a licence must be registered by 5 September and the auctions will commence two weeks later.