O2 begins €70m upgrade to 3G network

Mobile phone operator O2 has begun a €70 million upgrade to its 3G network that will deliver faster data speeds by the end of this month.

The company is upgrading its network in 250 locations across 14 counties.

This will bring faster mobile data speeds for customers in Carlow, Cork, Donegal, Dublin, Galway, Kildare, Kilkenny, Limerick, Longford, Louth, Mayo, Meath, Sligo and Wicklow.

Other locations
A similar number of 3G sites are due to be upgraded in other locations around the country by the end of this year. This move comes in advance of its rollout of its 4G network, which will offer next generation mobile technology services.

Late last year, O2’s Spanish parent company Telefonica paid €225 million to secure the maximum allocation of high-speed spectrum for 3G and 4G services in an auction conducted by regulator Comreg.

In total, O2 is investing €200 million in upgrading its network in the next three years for 3G and 4G services.

Paul Whelan, director of finance and technology at Telefonica Ireland, said the upgrade of its 3G services was due to the fact that handsets for 4G will not be available for a number of months.

“The handsets just aren’t there at the moment and won’t come on stream until the end of December 2013 at the earliest and probably more likely in 2014,” he said.

On the benefits of the 3G upgrade, Mr Whelan said: “In simple terms, they will now see a stronger 3G signal on their mobile device in more places, indoor and on the move.”

Mr Whelan said preparations for its 4G network were well advanced with sites due to go live around the country from the autumn.

Faster speeds
Mr Whelan said 4G would offer increased bandwidth that would deliver faster speeds and better reliability to customers.

On current trading, Mr Whelan said the the market remains “very competitive”.

“Customers are still seeking out value and that is putting pressure on tariffs for the nine [mobile] brands in the market,” he said.

Recently released figures for the first quarter of this year, show that Telefonica Ireland had an average revenue per user of €26.2 compared with €29.2 for te same period of 2012.

Pre-pay was down 7.9 per cent while revenue from contract customers was 15 per cent lower.

Telefonica Ireland’s revenues declined by 12.1 per cent to €136 million over the same time period.