Ireland may change licence fee

date: November 26, 2001

Negotiations on the fee to be charged for Irish 3G mobile phone licences are understood to have progressed with a view to a settlement before the end of the year. It is thought that the Department of Finance has tabled new proposals that could extend the life of the licences, effectively lowering the licence fee.

The fee has been the subject of a row between the department and the telecoms regulator for over a year, leaving Ireland as the last European Union country to issue 3G licences. Four 3G licences - one A licence offering nationwide coverage and three B licences with an urban focus -- were due to have been issued by the end of this year.

The tender process for the licences has not even begun because of the fee dispute.

The telecoms regulator has recommended that £25 million be charged for the A licence and around £60 million for each of the B licences. It is understood that the department will not budge on its desire to charge £50 million for the A licence and £100 million for each of the B licences.

Sources close to the matter said the department was now considering extending the lifespan of the licences.

"The department wants to know it will raise a certain amount through the licence contest, even if it is over a longer period," one source said. It is thought that the department does not want to leave itself open to allegations that it undercharged for the licences.

Sources close to the contest said representatives of the department and the ODTR were treating 3G as a priority. It is thought a compromise on the duration and conditions of the licences could bring about an end to the standoff.

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