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Three hats in the 3G ring

Three companies have applied for third generation mobile phone licences, according to the Office of the Director of Telecommunications Regulation.

By today's noon deadline, Vodafone, Digifone's parent company O2 and Hong Kong conglomerate Hutchison Whampoa had applied for one A licence, but there are only two bidders - Vodafone and Digifone - for the three B licences.

A final decision will be made in June. An ODTR spokesperson said there was strong competition for the A licence, but the B competition would have to be looked at as there were only two bidders for three licences.

There are four 20 year licences available, with three B licences costing €114m each, and one A licence costing €50m, but with a requirement to build the network quicker.

The A licence provides for 80% population coverage and potential extra capacity to allow other operators, known as MVNOs, access. The B licences require 53% coverage.

The structure of the competition is designed to encourage a newcomer into the Irish market, but since the German and British government's raised huge sums auctioning their licences, the potential success of 3G technology has come under question.

* Western Wireless International, the majority shareholder of third mobile operator Meteor, has confirmed that it did not bid for a licence.

'Having evaluated the bid process exhaustively, including the investment requirements for licence fees and rapid infrastructure rollout, WWI is convinced that Irish consumers will be better served by a continued focus and investment by Meteor on the delivery of its GSM and 2.5G voice and data products,' it said.