Hong Kong-based mobile operator Hutchison Whampoa has won the competition for the so-called third generation licences (3G), it was announced this morning.
Telecommunications regulator Ms Etain Doyle awarded Hutchison Whampoa the A licence. If it accepts the offer Vodafone and O2 - who both applied for the licence - will be offered B licences. Hutchison Whampoa did not apply for a B licence.
The A licence provides for 80 per cent population coverage and potentially extra spectrum to cover mobile virtual network operator services.
The B licence provides for a minimum coverage of over 50 per cent. Licence fees were approved by the Minister for Finance, Mr McCreevy, and licencees must pay $50.7 million for the A licence and $114.3 million for each B licence.
The 3G rollout will net up to €280 million for the Exchequer. The Government received only three bids for the four licences available - Meteor did not apply.
The Government will be disappointed not to have raised a further €114.3 million and will have to consider carefully how it can be made attractive to another bidder in the future.
Because a fourth bidder did not emerge the Government's target to raise €394 million in fees will not be met. In Europe, where licences were issued over the past two years, some €120 billion was raised, while in Britain, the Chancellor of the Exchequer's coffers were swelled by £22.4 billion.
