Three mobile phone firms have committed to offer third-generation (3G) mobile phone services in the Republic during 2003, up to a year ahead of the telecoms regulator's deadline of January 2004. The firms have also joined a new working group to establish a code of practice on site sharing to help roll out the new infrastructure to support the mobile technology.
The regulator, Ms Etain Doyle, confirmed yesterday that Vodafone, O2 and Hutchison Whampoa had all committed to introduce the latest generation of mobile phone technology during 2003. She also said her office would confirm the fulfilment of each operator's rollout milestones at the relevant times.
Third-generation mobile phone technology will enable users to send and receive video clips and other data at very high speeds to their handsets. Originally viewed by the industry as a licence to print money, the high cost of licences and building networks has led many firms to delay or scrap their investment in the technology.
The 3G licensees in the Republic all committed to introduce the technology earlier than required because of the competitive nature of the tender process for the mobile service. Because Ms Doyle chose to hold a beauty contest rather than an auction for the four Irish licences on offer, companies were encouraged to compete on rollout commitments and penalties in their bids.
Each firm was awarded extra points in the licence competition for beating the regulator's target deadline of January 2004 to launch a 3G service.
The firms also agreed to pay substantial penalties to the regulator if they failed to comply with their licence requirements. The level of payments was also set competitively during the process.
In the event, just three companies bid for the licences, making it inevitable that all the participants would receive a 3G licence. Due to the competitive nature of the contest, all the firms face tight rollout schedules, in some cases ahead of European statesthat completed their contests months before the Republic.
It is understood Vodafone almost pulled out of the 3G licence contest in the Republic due to the stringent rollout conditions attached to its licence. Earlier this year, the firm asked the regulator for an extra month to consider whether to accept a licence. It subsequently chose to accept the licence it was offered.
O2 also strongly criticised the licensing process in a submission to the regulator seen by The Irish Times. It says the structure of beauty contests organised by the telecoms regulator has produced an "unbalanced licensing regime with more onerous licence conditions on some applicants when compared to others".
The exact launch details of each operator will not be disclosed by the regulator as she is not scheduled to publish the firm's licences until 2004.
Vodafone and O2 said they would not reveal their plans when contacted yesterday.
Meanwhile, all three operators have joined a working group with the regulator to promote mast sharing for 3G technology.
