License Date: Mid 2002

Total Licence Price:
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Winners: ???

Four Licences to Provide 3G Services in Ireland - Information Notice

Ireland's telecommunications industry regulator on Tuesday announced the cost of bidding for the country's 3G mobile phone licences. country's finance ministry, plans to award four licences via a "beauty contest" rather than through auction. The "A" licence, requiring greater network coverage, will cost 50.7 million euros, and the "B" licences 114.3 million.

One "A" licence on offer would require companies to provide coverage to at least 80 percent of the population, while the three "B" licences would require coverage of Ireland's five largest cities -- around 53 percent.

There will be an upfront payment of 12.7 million euros for the "A" licence and 44.4 million for the "B" licences, followed by a moratorium of three years to five years, with the deferred payments over the fourth to 15th years of the 20-year licences. The closing date for receipt of applications will be 27th March 2002.

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 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.

Ireland has already missed the deadline of June 1st, 2001, the date originally targeted by the Office of the Director for Telecommunication Regulation for the issuing of 3G licences in Ireland.

End of 2001, estimated price of US$140 million using beauty contest. One license will also include some GSM900 spectrum.