ESAT Digifone faces a fine running into the millions it fails to provide mobile phone coverage to 80 per cent of the population on its launch date, sometime in the last quarter of this year. Nine months later, it would face a further huge fine if it has not extended coverage to 95 per cent of the population.

However, Mr Barry Maloney, the joint managing director of Esat Digifone is not unduly worried, despite the company having planning permission for only 70 per cent of the masts it requires to build its network.

In addition, at least five of the company's proposed masts have been refused planning permission. He remains confident that he would achieve the required 80 per cent coverage and Esat would not have to pay the massive fine.

We want to get operational as quickly as possible, for reasons of commercial viability, as much as any possible penalty," Mr Maloney said. If last Christmas was anything to go by, then sales of mobile phones are again expected to reach record highs and it would be imperative for Esat Digifone to be established by then.

Mr Maloney does admit to considerable frustration at the slow pace of the planning machinery and at the "lack of co-operation" the company has experienced in certain areas.

Although the company has been working on its planning applications since 1994, many local authorities, including the crucial Dublin councils, have taken a decision not to grant permission for any masts until the Government publishes promised guidelines, on the health and safety issues involved.

Councils such as Fingal say they do not have the information and expertise to adjudicate on the health and safety issues involved with these masts. This year Fingal County Council has refused permission for a mast at Brady's Garage on the Old Navan Road. In July this year, another mast at Cappagh Road, Finglas, was also refused. In both these cases, the absence of Government guidelines was cited as a reason for the refusal.

The guidelines are intended to assist planning authorities, An Bord Pleanala, operators of mobile telecommunications services and the general public, by providing guidance on dealing with telecommunications antennae and support structures, within the planning system, according to the Department of the Environment. A consultation draft was issued by Environment Minister, Mr Howlin, last December and interested parties made submissions.

The guidelines are due to be published this week and the aim is to provide relevant technical information and also guidance so the environmental impact is minimised and a consistent approach is applied by the various planning authorities.

Companies seeking planning permission must furnish evidence to the planning authorities that its installations comply with relevant international health and safety standards.

Esat claims that independent research shows that a television set gives off 2,000 times more radiation than one of its masts. It also claims its signal operates at a lower power than most household appliances, such as radio alarm clocks, hair dryers and electric blankets.

"There is no evidence to suggest that exposure to low power electromagnetic fields utilised in Esat Digifone infrastructure poses any risk to health," according to Mr Maloney.

This has not convinced residents in many parts of the country who have objected to masts being sited near them.

One of the major difficulties at local level, Mr Maloney said, is that people are confusing mobile phone masts with the controversial MMDS microwave television masts erected some years ago. Objections have been heated, in a number of cases.

The fact that Telecom Eireann's Eircell network was given a six month "window", during which it did not need to seek planning permission to construct its network, upset many people around the country, Mr Maloney said. Esat has gone to a lot of trouble to persuade people that its masts are safe.

In a bid to speed up construction of its communications network, Esat has signed deals with RTE, the ESB and Coilte, to lease sites from them on which masts will be constructed. Where possible, the planning authorities encourage co-location of masts by different bodies on the same sites. RTE and the ESB have sites which fit into the "radio map" of Esat's planned coverage area.

The firm is determined it will not launch its service until it can offer a high quality service.

Esat promises it will win the battle with Eircell, on the basis of better service to customers. The number of calls which are cut short prematurely because the customer goes out of coverage, will be dramatically reduced, predicts Mr Maloney.

In addition, Esat promises that the price of mobile phones will be significantly reduced, "in conjunction with competitive call rates". Details of handset costs and call rates will be announced closer to launch time, said the firm.

With the cost of handsets already falling to very low levels, the only other area for Esat Digifone to compete is on tariffs.

A total of 1,700 direct and indirect jobs have been promised by thee Esat Digifone consortium. At thee launch stage 320 full Time jobs will be created, rising to 590 over the period of the licence.

In all, 300 of these will be based in Limerick, 240 in Dublin and the a remainder at several locations around the country Indirect jobs will total 640 at the launch and 180 at full maturity. An additional 170 jobs will be provided in the set up phase.

Esat Telecom holdings Ltd, wholly owned by Denis O'Brien's Communicorp Group, holds 40 per cent of the Esat Digifone shares, as does Telenor of Norway. Dermot Desmond's IIU Nominees Ltd holds 20 per cent.