Between the lines: $20m tidy sum in any language

Didn't Maori do well.

Yes, they missed out on free spectrum in the third-generation cellular auction. But with prices on the three lots offered reaching little more than their $10 million reserves, they make the $15 million allocated by the previous Government for Maori-language development look even more like a handsome reward.

To be true, the previous Government strenuously denied that the $15 million had anything at all to do with the Waitangi Tribunal's rejected recommendation that Maori get a slice of the radio spectrum. But no one was fooled by that, least of all the Crown's own lawyers, who again made the connection when the Maori claim was before the High Court two weeks ago.

The Maori claimants lost but, long before, they had managed to parlay another $5 million out of the Government for developing their preferential rights to a quarter of the third-generation spectrum which had been set aside at a 5 per cent discount to everyone else.

Almost certainly, it was more by accident than design that Maori cut themselves a good deal.

They wanted much more than the $15 million in expectation that the third-generation spectrum would go for perhaps $200 million. And they could be excused for salivating at the prospect that it could be worth between $400 million and $650 million, as suggested by some analysts.

But the hype was always overblown - more so as doubts crystallised about the business case for building another cellular network and concerns grew about the time lag before the necessary technology became available.

Now, with bidding on the three blocks of third-generation spectrum seemingly stalled, it could be time to adopt Telstra Saturn chief executive Jack Matthew's recommendation that the bidding be brought to a close if no one else is prepared to enter the market.

Could the second-generation portion be a fizzer, too?

On the surface, no. Ihug has expressed its determination to build a second-generation network in Auckland, at least. And several more players lurk in the wings.

But prices have been even weaker for the management rights than in the third-generation segment, and the lack of interest in buying the underlying licences has been interpreted by some as indicating that bidders are not very serious.

If so, then that raises questions about whether the spectrum should have been auctioned at all.

Some countries are thinking twice after British prices went far too high.

They are going for beauty contests where prospective users state their cases, with the spectrum going to the best propositions.

That approach is anathema in hands-off, technology-neutral New Zealand.

But given the sheer difficulty of putting together a viable business plan for another cellular network of any kind, a managed approach may have been better.