State to lease sites for phone mast use

The Government plans to generate €100 million over 10 years by leasing space on public buildings for mobile phone masts, writes…

The Government plans to generate €100 million over 10 years by leasing space on public buildings for mobile phone masts, writes Jamie Smyth, Technology Reporter

It is also planning to amend the State's existing mobile phone deal between O2 and the Garda, which has been criticised by the firm's rivals as anti-competitive.

Minister of State, Mr Tom Parlon, said yesterday that a report commissioned by the Government had identified the opportunity of raising €100 million over 10 years from mast sites.

The Office of Public Works would begin signing deals shortly with the main mobile firms - Vodafone, O2, Hutchison and Meteor - for access to the sites, he added.

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All 1,000 public buildings would be opened up for use by mobile firms except schools, which are exempt from the plan.

Mr Parlon said he envisaged that Garda masts would also be opened up to other companies apart from O2. He said this would be consistent with the State's plans to promote the sharing of mast sites with firms.

O2's exclusive deal with the Garda was strongly criticised by its main rival, Vodafone, which lodged a complaint with the Competition Authority. But this complaint was dismissed by the authority in 1998. It argued that the deal had enhanced competition by enabling the second mobile firm to enter the market.

Mr Parlon said the policy would raise valuable cash for the Exchequer, which could be used to build extra prisons or fund the Garda. He said the cash could also be used to help fund the purchase of buildings for the Government's decentralisation policy.

He said he did not anticipate that there would be large-scale objections to the siting of mobile masts on public buildings. All operators given licences to install equipment on State property would have to meet planning requirements and strict radiation emission limits, said Mr Parlon.

Mobile firms are expected to be the main beneficiaries from the State's policy to offer access to its sites and currently need thousands of mast sites to offer third-generation (3G) services.

These new 3G services will offer consumers high-speed internet and multimedia services to be beamed to mobile phones.

But sources said yesterday the State would have to move quickly if it were to realise the full potential of its new policy, as firms are already choosing sites.

It is understood that the new entrant to the market, Hutchison, has already signed scores of deals for mast sites with the ESB.

Wireless broadband firms may also take site offers. Firms such as Leap Broadband, Esat BT and Irish Broadband beam high-speed internet signals to laptops and homes.

The masts policy forms part of Mr Parlon's "Transforming State Assets" programme, which is seeking to extract value from the State's property portfolio.

Other projects include a €500 million redevelopment at Westgate; the sale of a one-acre property at Lad Lane, Dublin; and an equity-exchange programme involving Garda stations.