The one thing that stands out immediately about how we have finally decided to award third-generation (3G) mobile telephone licences is that no one in Government seems to understand the concept of the time value of money.
It sounds like one of those complicated financial measures by which investment analysts befuddle the public but the basic idea is really quite simple.
How much would you pay me now for the right to receive $100 from me in one year's time?
If you say $100 you have an instant deal. I take your $100 and, even if I play things safe by depositing it in the bank, I keep $4 in deposit interest at the end of the year and give you your $100 back.
If you say $50, no deal. I will need too much luck to make up that other $50 in a year's time.
Let us call it $90. This is the same as saying that we are discounting your $100 by 10 per cent a year.