Ireland facing subsidy ban over 3G licenses

date: May 13, 2001

Pressures are putted on the Irish government by the European Commission to issue 3G mobile licenses by January 2002.

Ireland must be in line with other EU members, the commission said, failure to issue 3G licenses by the end of the year will lead to infringement proceedings being taken.

The Irish government (Office of the Director of Telecommunications) is already facing tough time from home operators to lower the license fees.

The government is hoping to raise £400million from the auction, four license will be issued which will be valid for 15 years.

Etain Doyle, a spokesperson from ODTR believes at the current rate, £400million is still too much for an unproven technology. We want to wait until the market situation is the right condition before we commence with the auction.

The infringement proceeding means the Irish government could be fine for an unlimited sum or subsidy withdrawn to Irish industries.

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