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Irish 3G license process stumbles over price

date: 25th January 2001, source: Total Telecom

The Irish 3G-license award process has been held up by a dispute over price, according to reports Thursday. The regulator, Etain Doyle, is pushing for a low figure for each of the four licenses, but is facing resistance from the government, which wants to push the price up as high as possible, the Irish Independent reported.

"The minister of finance is required to give consent," a spokeswoman for the regulator told Total Telecom. She said the two parties are currently in discussions and the regulator is confident the tender document, detailing the prices, will be published "fairly shortly." The actual award process is still on track for June, she added.

The newspaper said the department of finance is angling for a charge of 100 million Irish punts (US$116 million) per license, whereas Doyle favors IP70 million ($81 million). The lower price would speed up the process.

Both sums are low compared to the billions of dollars paid in auctions in the U.K. and Germany. And the French government Wednesday was humiliated by the withdrawal of a potential bidder for its 32.5 billion francs (US$4.6 billion) licenses, leaving only three companies chasing four licenses.

Ireland has opted for the beauty-contest method, under which applicants are judged according to their business plans. Licenses are expected to go to the three incumbent mobile operators, Vodafone's Eircell, BT's Esat Digifone and Meteor, owned by U.S. Western Wireless and Ireland's RD Communications.

Doyle said in December that 20 parties had expressed an interest. Potential bidders include: the electricity supply board (ESB); Vivendi; wireless site developer Crown Castle; U.K. cable group NTL; France Telecom's Orange; and WorldCom.

The tender document detailing the process was supposed to be published in December, but the schedule was missed because of the dispute.

Ireland will award one Class A license with the obligation to cover 80% of the population by the end of 2005, and three Class B licenses, which must cover 53% of the population. All have equal spectrum, though the Class A license holder will be able to add more if it provides accommodation to virtual network operators.

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