Singapore Cancels 3G Auction

Singapore canceled an auction for futuristic third-generation mobile phone licenses Wednesday because the would-be bidders decided to buy different segments of the city-state's airwaves.

``It's off,'' government spokesman Dulcie Chan told The Associated Press when asked if the auction would continue.

Singapore planned to auction four licenses, but only three companies decided to bid. If the three companies had decided to go for the same section of airwaves, the auction would have proceeded.

Instead of bidding for the 3G licenses - for which companies in Europe paid billions of dollars last year - Singapore Telecom Mobile, StarHub Mobile, and MobileOne will buy the licenses $55 million, said a statement from the government's Infocomm Development Authority.

The only foreign player to express interest in the auction, Hong Kong's Sunday Holdings, pulled out of the running earlier this week but said it would bid for the fourth license when it became available again.

Singapore reserves the right to sell the license after 12 months from the first sale. Chan said the price for the fourth license could go higher than $55 million, but not lower.

Besides making phone calls, third generation mobile phones ensure fast access to the Internet, e-mail, movie and video games. Many people think 3G will be the wave of the future while others worry that telecoms companies are wasting money on untested technology.