THE Garda Commissioner has agreed to allow Esat Digifone, the private mobile telephone company, use of masts on Garda stations to extend its network.
An agreement in principle has been signed between the Commissioner, Mr Pat Byrne, and the company, in which Mr Denis O'Brien and Mr Dermot Desmond hold a majority stake.
The Department of Justice confirmed that "heads of agreement" were signed between the two organisations recently but said the "live use" of sites would not begin until a formal written agreement has been concluded.
A Department spokeswoman said "commercial terms" have been agreed and that Esat Digifone has been given permission to carry out preliminary work.
The Garda has about 700 stations throughout the State, each with its own radio mast. The deal would allow Esat Digifone to attach its communications hardware to the mast and will increase the coverage offered by the service.
It is not known yet how many of the Garda's masts would be used by Esat Digifone, which is initially concentrating on building up its coverage for the mobile telephone system in urban areas and along primary routes.
It is understood that while a monetary value will be placed on the use of the masts, the Garda may be given use of Esat Digifone facilities in payment or part payment.
It is believed to be the first time the Garda has entered into such a deal.
The agreement should allow Esat Digifone to move more quickly towards its formal launch date for the service, expected to be early in the new year. The company has said it will not start the service until it covers 85 per cent of the population.
Esat Digifone is 40 per cent owned by Mr O'Brien's Communicorp Group while a further 40 per cent is owned by Telenor Invest AS, a wholly owned subsidiary of the Norwegian telecommunications company, Telenor. The remaining 20 per cent of its shares are held by IIU Nominees Ltd on behalf of Mr Desmond.
In July, Esat Digifone said they had planning permission for only 70 per cent of the masts it was trying to erect. Permission had been refused at least five locations. The use of Garda masts will speed up its effort to reach its target.
In August, the Department of the Environment issued guidelines encouraging sharing of masts by companies and suggesting new ones be erected in residential areas only as a last resort.
Esat Digifone says it will eventually employ 500 people to run the new service and the system will cost about £120 million.