Dáil Éireann díospóireacht -
Wednesday, 10 May 2000

Vol. 518 No. 6

Written Answers. - Telecommunications Network.

Thomas P. Broughan

Ceist:

181 Mr. Broughan asked the Minister for Public Enterprise the plans, if any, she has to organise a licence auction for the new Internet to mobile phone facility along the lines of the recent very successful British auction devised by a prominent UK economist. [13144/00]

Minister for Public Enterprise (Mrs. O'Rourke)

Arrangements for licensing of third generation, 3G, mobile phone systems are, in the first instance, a matter for the Director of Telecommunications Regulation. As Minister for Public Enterprise, however, I have an overall policy role in regard to the telecommunications sector and, specifically, in relation to the allocation of radio spectrum. In line with this responsibility, I intend being fully involved in developments on this issue. The Minister for Finance has also a role in this area in relation to the fees which may be imposed for such licences and I can confirm that my Department has already been in contact with the Department of Finance on this issue.

As for the method of allocation of licences, I should point out there are a number of options available to Ireland in this regard, including the holding of auctions as done in the UK, the use of comparative selection processes or so-called "beauty contests", and the distribution of licences by means of lotteries. It is possible that combi nations of each of these options may also be used. While the use of auctions may seem attractive as a means of raising large amounts of money for the Exchequer, there are concerns that the costs to operators might ultimately be passed on to the consumer. The high price to be paid may also have a negative effect on an operator's ability in the areas of research and development, infrastructure roll-out, and the delivery of advanced services. These are matters still for discussion.

I am aware that the director has recently started an examination of all aspects relating to the 3G licensing issue, including the method of licence allocation, and I understand that she proposes carrying out a public consultation during the summer as part of this examination. My Department will be holding discussions with the office of the director on all the relevant issues in this regard in the very near future.