Our submission to the Digital Dividend green paper for the sale of 4G Electro Magnetic Spectrum licenses.
The electro magnetic spectrum is a scarce resource.
Over time it will increase in value, especially with the advent of new technology.
As such, the recent release of the iPhone 3GS has delivered windfall profits for the telco’s with the additional use of video/ web apps. 4G will dramatically speed up the search times and thus useability of the resource and technology.
In order for the public to gain a share of the naturally increasing value of the 4G resource:
A yearly EMS rent is to be paid by all EMS license holders at a fixed percentage, based on it’s ANNUAL value.
Property valuers and media consultants can quite easily determine the yearly value of a telecommunications license.
We propose a 10% annual licensee rental based on the yearly value.
This will keep a lid on speculative interests that may find motivation in flipping such a resource for exorbitant profits.
By doing so, the Rudd – Conroy government will help to keep a lid on the price of telecommunications, the very breath of the market system with it’s desire to deliver ‘perfect information’ to consumers.