3G denotes the third generation of wireless communication technology.It will provide faster transmission of wireless data and voice communications giving users much quicker access to internet, entertainment, information and electronic commerce services.

It has the potential to offer much greater flexibility for businesses and individuals but Irish consumers could have to wait another two years before they can use these mobile services.

Companies which are awarded these licences will have to invest in infrastructure to support 3G.

Operators have introduced 3G in Japan and the Isle of Man but technical glitches have hampered the introduction of services for consumers.

In those markets, 3G is accessible through small pocket terminals which have the potential to facilitate online shopping, banking or the playing of interactive computer games.

In the future it is hoped this technology will enhance machine-to-machine communications. Domestic appliances could have built-in radio modems to provide remote control and diagnostics.

Vending machines, for example, could be configured to tell suppliers when they need to be re-stocked.