Bidders for €100m digital radio deal have one month to complete tenders

Bidders for the contract to build a €100 million digital radio network for the State's emergency services have a little over a month to complete their tenders.

The Government has set a deadline of August 1st for tenders for the contract to be lodged with the Department of Finance, which is overseeing the project.

Last month it emerged that Arqiva, BT, Eircom and O2 were among the shortlisted bidders for the managed digital radio service (MDRS).

The network will serve the Garda Síochána, fire brigades, marine rescue, ambulance and other emergency services around the country.

The MDRS network will be integrated and allow for greater communication between different regions and services. When it is built, it will bring the Republic into line with other EU countries, who have already adopted digital communications systems for their emergency and public safety services.

Arqiva is already the biggest provider of emergency service communications throughout Ireland. Its clients include fire brigade, ambulance and marine rescue services north and south of the Border.

It is leading a consortium whose backers include US company Lockheed Martin and Selex Communications, part of the Italian Finmeccanica group.

According to Arqiva chief executive Pat Walls, the MDRS project will require an investment of €100 million to establish a network that will function for the next 10 years.

He also estimates that it will involve the creation of 200 jobs, 100 in the construction and rollout of the network, and a further 100 in manning and maintaining it.

Arqiva's main shareholder is Macquarie Communications Infrastructure Group, part of the Australian investment bank Macquarie.

According to Mr Walls, that particular element of Macquarie is focused on investing in communications infrastructure, and is mainly interested in long-term opportunities like the MDRS project.

Along with public safety networks, Arqiva also builds broadcasting networks, and manages both ITV's and Channel 4's networks in Britain. It also works in the field of wireless communications and with satellite technology, where its clients include Sky Television.

In Ireland the company can trace its roots back through various guises as PYE and Phillips to the 1950s. In 1999 NTL bought it, and it became NTL Broadcast. Last year, Macquarie bought it and it became part of its communications broadcast division.

Arqiva had a turnover in 2005 of €475 million and generated earnings before interest payments and tax of €172 million.

The MDRS contract for which it is bidding will be a public-private partnership. The company will finance, design, build and operate the network.

Selex will provide the radio infrastructure and Lockheed will provide the programme management and system engineering.

According to Mr Walls, if Arqiva gets the contract it will have the initial parts of it operating some time in the second quarter of next year, with rollout finished by the end of 2007.