Europe's top telecoms policy official said it might be better for Europe's economy if high expectations about the price third generation (UMTS) mobile phone licences will fetch were not met.

"I notice that finance ministers have been raising their expectations on the revenue possibilities from the auctions or licences in general," the European Enterprise Commissioner Mr Erkki Liikanen, a former Finnish finance minister, said. Mr Liikanen said he had been watching with "certain uneasiness" the impact Britain's successful auction of five licences for £22.5 billion had had on expectations across the EU.

The Republic is set to auction its third generation licences next year.