RTE to retain maximum stake in Netco division

RTE will retain the maximum permissible stake in its transmission and distribution division, Netco, because of its prospects for growth, which RTE believes are "extremely strong".

The semi-state company is to maintain a 28 per cent shareholding in the business, which operates a network of approximately 126 sites providing coverage to more than 99 per cent of the population.

As well as enabling the transmission of analog and digital radio and TV signals, the company believes opportunities exist to rent more tower space for other functions on an increased number of sites.

A pre-marketing document has been issued by RTE's advisers, N.M. Rothschild & Sons, inviting expressions of interest in Netco. Existing contracts with RTE and other stations provide a commercial return on the assets employed, according to the document.

The establishment of the company follows the decision of the Government to separate the transmission and broadcast elements of digital terrestrial television. Netco will be obliged under the Broadcasting Act 2001 to provide services to existing customers, including RTE, TV3, TG4, and independent radio stations and, in due course, new digital terrestrial TV stations.

As well as new TV and radio business, the company's management has identified potential new revenue streams by renting mast space and providing other services to fixed-line, wireless and mobile telecommunications operators.

The company already has arrangements with Esat Digifone, Esat Telecom, Eircell, Meteor and Cable & Wireless.