The option value of the UK 3G Telecom licences: Was too much paid?
Marcello Basili
(Professor of Economics in the Department of Economics, University of Siena, Italy. E‐mail: basili@unisi.it)
Fulvio Fontini
(Professor of Economics in the Department of Economic Science, University of Florence, Italy. E‐mail: fontini@cce.unifi.it)
907
Abstract
In this article the aggregate option value of the UK 3G telecom licences is evaluated. Revenues, capital and opertaing costs of UMTS business are calculated for the period of licences’ duration and are employed to show that the aggregate revenue extracted by the UK’s Government is (slightly) lower than the aggregate price of licences paid by winning telecom companies.
Keywords
Citation
Basili, M. and Fontini, F. (2003), "The option value of the UK 3G Telecom licences: Was too much paid?", info, Vol. 5 No. 3, pp. 48-52. https://doi.org/10.1108/14636690310487246
Publisher
:MCB UP Ltd
Copyright © 2003, Company