National Audit Office to investigate 4G deal

16 April 2013

EE The National Audit Office (the NAO for short) are going to investigate the 4G deal to see whether the government was ripped off or not. The very fact they're looking into it suggests that they were.

Basically, as the 4G auction failed to raise the expected revenue, £1.2billion less than everyone had hoped for, the NAO are looking to see if anything underhand took place while O2, Vodafone, EE and Three made their bids.

There have been reports of a letter from the NAO’s auditor general, Amyas Morse, to Labour MP and shadow minister for media and communications Helen Goodman, which says that there'll be a "value for money" study into the auction, adding: "By not making maximising the auction’s revenues an objective for Ofcom, the government has failed to get value for money on this project."

Goodman is quoted as welcoming the investigation, saying: "Serious questions must be answered as to why the Conservative-led government ended up £1 billion short of the estimate George Osborne had provided just months earlier. When the 3G auction took place, Labour ensured that maximising revenue was an objective. The Conservative-led government did not do the same for the 4G auction, which I believe was a serious mistake."

TOPICS:   Mobile   Broadband

1 comment

  • Matron
    Well, it's pretty obvious what happened. First is that George Osborne massively overstated the figures. This should not come as a surprise. But providers were also clearly not happy to be ripped off again like were with the 3G auction.

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