Feeds

Govt 3G greed hurts us all – EITO

Never mind the telcos, what about the IT market?

  • alert
  • submit to reddit

Security for virtualized datacentres

The British and German governments have manufactured a high-tech recession by their greed in taking too much out of the 3G/UMTS mobile phone auctions, according to researchers at EITO, the European Information Technology Observatory.

Dr Bernhard Rohleder, EITO's managing director and CEO, accused the two governments of shooting themselves in the feet by taking so much money out of the high-tech business. "If you calculate the general economic effect of that money, the state did not win anything," he said. "For example, Germany has lost 28,000 jobs in ICT (information and communication technology)."

Whether you feel sorrow or contempt for the telcos who overbid in their desperation to secure 3G/UMTS licences, it seems that the after-effects have spread far beyond the mobile phone business. EITO's research shows that the countries which took the highest licence fees now have the weakest ICT markets in Western Europe - Germany is in recession this year with -1.3 per cent, and although the UK will show growth of 1.6 per cent, that puts it behind such economic powerhouses as Italy and Spain.

"Across Europe, €100bn has been spent on UMTS [3G] licences, most of it in Germany and the UK, and that is the main problem," Rohleder said. "All the software and services companies are affected by taking so much money out of the telecoms market, as it leads to cuts in investment.

"UMTS is the only reason for the decline. It's like throwing a stone into water - the large network operators have no money to invest with their suppliers, and as the ripples spread out they get weaker but broader."

Rohleder said that putting just €5bn back into the German or UK market would have instead produced growth of at least three or four per cent. "The governments set the wrong framework, and it was not harmonised across Europe," he added. "For example, UMTS licences in Germany were 352 times more expensive than in Switzerland." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Net neutrality protestors slam the brakes on their OWN websites
Sites link up to protest slow lanes by bogging down pages
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
Who us, SHARE infrastructure? Networks reject gov proposal
Execs pour scorn on 'national roaming' outline – report
Net neutrality fans' joy as '2.3 million email' flood hits US Congress
FCC invites opinions in CSV format, after Slowdown day 'success'
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.