Eircom has applied for a third generation mobile phone licence, prompting ComReg to invite expressions of interest in the last remaining licence to provide 3G services in the Irish market.
The group is understood to have submitted a formal expression of interest in the fourth 3G licence, increasing the prospect of competition in a fledgling market.
Vodafone's introduction of a service last year will be followed over the summer by Hong Kong-owned Hutchinson 3G Ireland. The only other holder of a 3G licence, O2, has yet to offer a service.
While Eircom has long signalled its intention of re-entering the mobile market, the application for the last remaining 3G licence is seen as a way into the market should it be unsuccessful in its bid for Meteor, holder of the third GSM licence.
Even if that bid is successful, the company would need a presence in the 3G market as GSM customers migrate to the more advanced service. Eircom's alternative strategy of establishing a GSM business by piggybacking on an established network with a mobile virtual network would also leave it with a long-term requirement for a 3G network.
The company's commercial director, David McRedmond, declined to comment on the process last night, stating that the group had said it would make an announcement about its mobile strategy only when there was something to say.
But given its pressing need to re-enter a market it left with the sale to Vodafone of Eircell, informed observers believe the company has no choice but to prepare now for a 3G offering.
The "B" licences sold to Vodafone and O2 had a price tag of €115 million over 15 years. Given inflation since ComReg ran a "beauty contest" for these licences in 2001 and 2002, Eircom would have to pay more than that if its application was successful.
While the regulator declined last night to reveal who was behind the expression of interest, it said it was obliged under EU rules to invite other submissions to ensure openness and transparency.
"Under confidentiality, we cannot say from who or whom the expression of interest has been received," said ComReg's spokesman.
There was no applicant for the fourth licence in the original competition. Hutchinson emerged at the end of that process with the sole "A" licence while Vodafone and O2 each secured one of the three "B" licences, the third of which is now being sought by Eircom.
The "A" licence demands a phased rollout of a service with coverage of 53 per cent of the national population by the end of this year and 80 per cent by the end of 2007. The "B" licence demands rollout with 33 per cent national coverage by the end of June 2006 and coverage of 53 per cent by the end of June 2008.
ComReg said any other groups interested in the fourth licence should submit their expressions of interest in the fourth licence by July 7th.
"Those who express an interest will then be invited to purchase the tender documentation and submit applications for the licence," it said.
"In the event that two or more applications are received, ComReg will then conduct a comparative evaluation in accordance with the procedures laid out in the tender documentation as for the original competition."
