The telecoms regulator, Ms Etain Doyle, hinted yesterday that a year-long dispute over the cost of four next generation mobile phone licences could be settled shortly.
The licences would enable firms in the Republic to provide multimedia services to handheld mobile devices at speeds faster than current technologies allow.
At a press conference in Dublin, Ms Doyle said she expected this round of discussions with the Department for Finance to be concluded "very shortly".
Ms Doyle said she could not reveal more due to the delicate nature of the discussions. It was in Ireland's interest to introduce third generation services, she added.
Industry sources believe the regulator wants to charge about €40 million (£31.5 million) for each licence while Mr McCreevy is seeking a higher price of about €80 million.
Ms Doyle is keen to attract competition to the mobile market and wants to encourage firms with lower licence costs while Mr McCreevy wants to maximise revenue for the Exchequer.
It is understood intense discussions are taking place on the issue of scheduling payments for mobile operators over a number of years.
This would remove the immediate burden on mobile operators, many of whom are saddled with debt after paying €120 billion for similar licences in Europe.
Mr Ultan Ryan, a telecoms expert with Mason Communications, said large once-off payments would not attract operators who would prefer a system based on paying the Exchequer a percentage of revenue generated by services. Just last week the French government confirmed it would reduce the price of its licences in an attempt to encourage operators to bid for those remaining.
A process to award four licences in France this year flopped when bidders withdrew over the high costs of the licences.
The dispute over the price the Government here should charge mobile operators for third generation licences has delayed the process of awarding them.
The Republic will be one of the last European countries to begin a competition to award the licences.
The Government faces an official censure from the European Commission, which had outlined a target date of January 2002 for the distribution of third generation mobile licences within the EU.
A Department of Finance spokesman said the Minister hoped the matter would be resolved quickly and contacts were continuing with the regulator.
