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O2 accepts Irish 3G licence

Mobile phone group 02, formerly called Digifone, has confirmed it will accept a third generation mobile phone licence.

The group won one of three 'B' licences made available in a recent competition by the telecoms regulator Etain Doyle, which obliges them to offer a service to 33% of the population by the end of June 2006.

O2's parent group MmO2 will pay 114 million euro over 15 years for the licence, with an upfront payment of 44.4 million.

The one 'A' licence was awarded to Hutchinson Whampoa, with a 'B' licence going to Vodafone.