But, at this early stage, no one really knows how quickly and extensively 3G will spread, how much consumers will be prepared to pay for these services, and therefore how much operators will earn from them. After all, 3G to date has not much to show for itself. There are no handsets or services currently available. And historically, forecasts of the potential of innovations have sometimes been wildly inaccurate. Governments are accommodating the impending shift to high-speed mobile communications by awarding portions of the radio spectrum for 3G services to companies.
Some governments directly select carriers in a process called a beauty contest.
Others are selling the airwaves to the highest bidders. In Europe, 3G license auctions have earned large windfalls for some governments. These governments are laughing their way to the central bank. In Asia, Hong Kong will adopt a hybrid of the beauty contest and auction methods, with the proviso that winners allow other operators access to their new networks. Singapore will hold an auction of four 3G licenses in early 2001.