Both applicants for the first satellite pay TV licenses told the Australian Broadcasting Authority Friday that they would not be able to meet the July 30 deadline to pay the $ A389 million ($ 264.52 million) total they bid in April.
No surprise to the industry, the two newcomers had difficulty rounding up the very high prices they put on the satellite operation.
UCOM couldn’t find the $120 million it had offered for the A license and HiVision failed to lodge the $144 million payment for the B license.
The ABA said the next highest bidders would be notified and that they have three business days to come up with a 5% non-refundable deposit. There were some 150 bids delivered, and if the new applicants fail to meet the deadline, the next highest bidders will be called in.
However, along with skepticism that the pair would manage to finance their bids, industry sources believe that UCOM and HiVision had lodged multiple bids, which would be allowed to cascade down until a viable level was reached.