Analysis: Using 1,800 State buildings for mast sites could give public finances a much-needed boost, writes Jamie Smyth, Technology Reporter

The Office of Public Works' (OPW's) decision yesterday to consider locating mobile phone masts at its substantial property portfolio could provide a much- needed boost for the public finances.

The Garda's exclusive deal with the mobile firm O2 enabled the force to benefit from a €12 million upgrade to its own communications network. Although there remain concerns that the State could have squeezed more revenue from the deal, it has demonstrated that public infrastructure can be used to generate cash.

Indeed, it begs the question why has the Government waited so long to co-ordinate a strategy? After all, mobile phones have been around for at least 10 years.

Analysts estimate a good mast site can generate at least €12,000 per year, transforming the OPW's 1,800 properties into a potentially lucrative rental business for mobile phone sites.

Demand for the new State sites from mobile firms is harder to judge and will depend on their expansion plans over the next few years.

But with Vodafone, O2 and a new entrant, Hutchison 3G Ireland, planning to introduce third- generation (3G) mobile networks across the State, the outlook for the new State strategy is positive.

Third-generation technology enables mobile phone users to use a range of multimedia application, including video streaming, on their mobiles. These services require higher data rates than existing voice services, forcing firms to expand their networks and establish more base stations.

It is likely that hundreds, and probably thousands of new sites, will be required in the Republic, provided that new 3G technology proves popular with users.

Likewise, the third mobile phone firm Meteor may seek to use some public sites in locations where it has no network, such as Donegal.

However, while the OPW's new strategy will bring in valuable revenue to the State coffers, it is almost certain to prove controversial among local communities. In many areas, action groups, concerned about the health implications of mobile phone technology, have been set up to oppose the erection of new mobile phone masts.

These groups are likely to oppose the use of public buildings by mobile firms, and many have had considerable success at local level by amending county development plans to set up exclusion zones around areas.

A decision by the OPW to set up mobile base stations at any of its school sites would almost certainly be vociferously opposed.