Despite 3G bid prices in Germany that spiraled to $46.1 billion i...

on European marketplace, sponsored by Commerce Dept., CompTel, European Competitive Telecom Assn. (ECTA), TIA. “I still believe the auction system is good, even if people overbid,” Kurth said in luncheon speech shortly before meeting with FCC Chmn. Powell: “I can’t help that.” Of high bid prices for licenses, which were highest in European 3G auction, he said: “It was surprising even to us.” Auctions still are better alternative than traditional European “beauty contest” method in which licensees were judged on merit-based factors rather than bids. “It’s a question of timing,” Kurth said, noting that at time of 3G auction, telecom market was at peak of its cycle. If bidding were held in today’s depressed economic environment, “I'm pretty sure we wouldn’t get the same results,” he said. Kurth said that in aftermath of auction, Germany had allowed operators to explore alternative solutions such as network sharing to help defray costs and keep rollout of services on track. He said another issue German regulators were beginning to encounter in wireless industry was calls by competitors to step up regulation of sector. In some cases, competitors argue that individual wireless networks in themselves embody monopolies and should be regulated as such based on factors such as prices to terminate calls. But Kurth said he advocated light touch in such areas. “We always step back when we have a feeling that the market is competitive,” he said. But he added: “We have a lot of forces who want to push us in this [other] direction and it’s a very crucial debate.” As for broadband access, Kurth said that as in U.S., regulators in Europe were struggling with how to ensure that incumbents provided network access to competitors for starting services. He said Deutsche Telekom recently lowered DSL prices for residential customers in what was seen as step closer to creating “mass market” for DSL services. In separate speech Thurs., ECTA Pres. Phil Evins said factors such as diminished availability of venture capital were pointing to another wave of company consolidations in Europe. He cited $8 billion merger last month of Sweden’s Telia and Finland’s Sonera. Trend of former national monopolies’ pairing up across border will continue, Evins said. Europe is likely to end up with 5 or 6 former national monopolies after consolidations are completed, he said: “There is still a lot of consolidation. There is still a lot of fallout.”