ITU chief: 3G auctions represented heavy tax on telecom

ITworld.com |  Networking

The head of the United Nations telecommunications agency has criticized the way the British and German governments handled the auctioning of frequency spectrum for third-generation (3G) cellular services and said their mishandling contributed to the severity of the problems gripping Europe's technology industry.

"It is the same as a very, very heavy targeted tax on the industry," said Yoshio Utsumi, secretary general of the International Telecommunication Union (ITU) at a press briefing in Tokyo on Wednesday evening, referring to the auction process.

"It is not the auction itself that was bad," he said explaining his criticism was targeted at the way the money collected from the auctions was spent. "(The money) was not used for (the IT) sector but used for other sectors. If the money was used, for example, for digitalization of broadcasting or a related field then the industry would not have suffered so much."

The U.K. Government collected

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