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In March 2006 blog, I commented to the exercise of awarding 3G licenses. One of the point raised was the substantial amount that DIGI would have to pay for a 3G license if it were to purchase it from one of the 3G license owner.
In May 2008, DIGI acquired TIME dotCom’s 3G licence by issuing 27.5 million new shares, valued at MYR649 million (USD194.6 million). This amount would definitely be substantially more that what TIME paid for the license in 2006, reported to be around RM50 million.
This examples nicely illustrates the value of rents on licenses issued by governments.
Picture source: http://www.mobileworld.com.my
1 comment:
It's may be just too late for Digi to obtain the license now and at a premium...but with substantial financial backing and better ARPUs growth rate MoM basis plus a new CEO (TheEdge covered this CEO last week)-they may also be on the right track though...
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