Seamus Brennan
Question:165 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the current position regarding a second mobile phone licence. [10342/95]
Written Answers. - Mobile Telephone Licence.
The competition for the award of a licence to a second operator of GSM mobile telephony within Ireland was announced on 2 March, 1995. The closing date for submission of applications is 23 June 1995. A Danish firm, Andersen Management International, has been recruited to advise on the evaluation of applications and on the conditions of the licence which will ultimately be awarded. A decision on the new licensee will be made by 31 October next at the latest. The actual licence will be issued as soon after that date as negotiations with the successful applicant can be completed.
The introduction of competition in mobile telephony is fully consistent with our strategy for the future development of the telecommunications sector. The penetration of mobile telephony in Ireland at 2.3 per cent of the population is low by European standards. The licensing of a second operator will inject a new dynamism into the market and lead to rapid expansion of the market, an improvement in the quality of service and reduction in tariffs.
The new licensee will be selected according to a range of criteria including a financial and technical capability, approach to market development, tariff proposals and the amount the applicant is prepared to pay for the right to the licence. Applicants are free to propose the licence fee subject to a minimum of £5 million. I want to make it clear that the Government has not at any stage indicated a requirement for any amount other than the minimum. We are seeking to license a strong competitive player in the mobile telephony market. It is up to applicants to put a value on the licence that will achieve this objective.