[opendtv] Re: Auction Hi-lights

This auction was originally scheduled for June of 2000. The scuttlebut then
was that it would fetch $100 billion. Add in inflation and that $100 billion
could be $123 Billion today. Remember that similar spectrum went for $35
Billion and $45 Billion in 2000 in the UK and Germany. Much smaller
countries.

And I don't think either the UK or Germany has seen any of their spectrum
used so far.

Bob Miller

On Mon, Mar 24, 2008 at 12:12 PM, Manfredi, Albert E <
albert.e.manfredi@xxxxxxxxxx> wrote:

> Bob Miller wrote:
>
> > Bert says it is not possible to see current broadcasters
> > building out an expensive national broadcast network because
> > the cost of infrastructure is so high. I agree. I can't
> > imagine current broadcasters understanding the value of
> > broadcasting OTA.
>
> That was related to installing a nationwide SFN.
>
> > But we may see winners of Auction 73 doing just that,
> > building an expensive broadcast network, or even more
> > peculiar, building out an even more expensive national
> > network for a much lower value business of broadband IMO.
>
> I'd expect these winners, i.e. mostly AT&T and Verizon, to build out
> something that is similar in cost, possibly more costly, than their
> cellular networks. And for which they will extract monthly fees at least
> as high as that as well. (Probabaly higher, since this was the biggest
> auction ever.)
>
> So, assuming you're talking about FOTA broadcast, how does that revenue
> compare with ad-supported TV? I don't know, but to me that's the
> question to answer.
>
> Or, if you're talking about ad-supplemented subscription TV, then maybe
> the monthly fees can be a little lower.
>
> I don't know about you, but to me these outrageous auction revenues are
> scary. As scary as the way house prices went up the last few years.
> Hrdly something to cheer about. The money might be going in the Treasury
> in the short term, but somehow AT&T and Verizon are planning on making
> back many times that amount.
>
> Bert
>
>
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