A decision on who has won the tender for the third mobile licence is expected to be announced early next week. Two consortiums are tendering for the licence which will cost £10 million.

The contenders are Orange, which won the fourth mobile phone licence in Britain and a consortium called Meteor which includes Irish company RF Communications and US operator Western Wireless and the Walter Group.

Orange has promised to apply the same tariff whether a customer is phoning Britain or Ireland as well as providing a number of services free which other operators charge for currently. Meteor has promised to drive down tariffs and concentrate on attracting first-time customers. It is also stressing that it would manage the service from Ireland, rather than Britain.

Orange is seen as the front runner, but last night industry observers were divided on who might win. Plumping for Meteor, one source said the company's proposal had to be seen as appealing from the viewpoint of the Office of the Director of Telecommunications Regulation which is overseeing the competition. ` "Meteor are going after the low-end user and the company has an Irish and an American connection," said the source. "An investment which includes an Irish partner must be seen as very attractive."

However, other sources feel the Orange proposal is stronger. Aside from treating Ireland and Britain as one area, it has also pledged to offer a series of services free of charge to the Irish market. Some of these services are currently charged for by the existing operators.

Some sources have also expressed surprise that Orange has unveiled so many of its "offers" and plans before entering the market. However, others say it is the way the company does business. "It is upfront and says, this is who we are and this is what we have to offer."

A flat rate for Ireland and Britain is seen as very attractive, but as Esat Digifone chief executive Mr Barry Maloney points out the other operators are unlikely to stand by if Orange introduces it. He says Cellnet and Vodaphone (the other British mobile operators) are likely to reduce the rates they charge Digifone and Eircell to carry their calls in the North and Britain. Orange has had some talks with Eircell regarding sharing infrastructure for erecting antennae, but Eircell chief executive Mr Stephen Brewer says they have received no approaches from Meteor. Digifone says it has not received an approach from Orange, regarding mast sharing.

Getting sites for masts is a key element of rolling out the network, which both parties pledge will be done very quickly. However, there is expected to be stiff opposition in some areas to the erection of masts.