Bernard J. Durkan
Ceist:121 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the position in regard to third generation mobile phone technology; and if he will make a statement on the matter. [17089/02]
Written Answers. - Telecommunications Services.
Third generation mobile phone technology, known as 3G, represents a major evolution in mobile technology allowing for the rapid transfer of data over the mobile phone. What principally differentiates 3G services from their current 2G counterparts is the greater capacity to handle data as well as voice services. Wireless Internet, audio on demand, video conferencing and traffic and travel information which is location specific will potentially be available on a 3G handset.
The licensing of third generation mobile phone technology is a matter for the Office of the Director of Telecommunications Regulation. In June 2002, the director announced that following a competitive selection process held during the year Hutchinson Whampoa, Vodafone and O2 had been offered licences to provide 3G services in Ireland. There were two types of licence to operate 3G in Ireland on offer. The A licence won by Hutchison Whampoa with a total fee of €50.7 million provides for 80% population coverage with minimum roll out requirements of 53% of the national population by the end of December 2005 and 80% coverage by the end of December 2007.
Applications for the A licence were evaluated on the basis of offerings made by the applicants with respect to mobile virtual network operators – MVNO – access, quality of service, coverage, speed of roll out, site sharing, promotion of competition, and performance guarantees to support the commitments made in respect of the offerings.
The B licences, which were taken up by O2 and Vodafone with a fee of €114.3 million, provide for a minimum of population coverage of 53%, equivalent to five major cities, and roll out requirements being somewhat slower than the A licence: 33% demographic coverage by the end of June 2006 and 53% demographic coverage by the end of June 2008. The differentiation in the fees reflects the greater rollout cost to the A licensee in meeting the coverage and time constraints compared to the minimum requirements for the B licences.