IBEC has called on the Government and the Telecommunications Regulator to opt for a "beauty contest" type selection process for awarding the next generation mobile phone licences.

IBEC's telecommunications and Internet federation (TIF) director, Mr Tommy McCabe, said yesterday the recent auctioning of third generation mobile phone licences in the UK which netted £22.5 billion sterling for the UK exchequer, has caused serious alarm both for telecommunications users and service providers.

The federation believes the optimal selection procedure for the award of UMTS licences in Ireland should ensure that the winners are both qualified and committed to contribute to the broader development of the next generation mobile market.

The objective should be to focus investment on the development of innovative services and applications for the Irish market, to the greater benefit of businesses, consumers and the economy as a whole, according to Mr McCabe.