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4G auction flop shows 'little value in supporting end user social networking'

Qedward (2499046) writes | about a year and a half ago

Networking 0

Qedward (2499046) writes "Ofcom has announced five winners of the 4G spectrum auction, which will allow for the widespread rollout of next generation mobile broadband services across the UK — but the value of the auction fell short of the government's estimates by a massive £1.2 billion.

Commentators were sceptical. Victor Basta, managing director of a company that advises technology companies on their IPOs, was underwhelmed by the results.

“The disappointing revenues from the 4G auction, well below government forecasts, are a reflection of the challenges that mobile operators face in growing revenues from their users in the social media age. Data-heavy social media services are causing huge growth in data traffic across mobile networks,” said Basta.

“Mobile operators increasingly find themselves in a role that is about supporting end users’ social networking habits, with little, if any, commercial benefit. Social networking has effectively turning mobile network operators into digital drug mules.”"

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