Six consortia met the August deadline to apply for Ireland’s second mobile phone license, which could be awarded by the Irish Department of Transport, Energy and Communications by the end of the year.
Scattered among the groups hoping to capture the 15-year license to operate a Global System for Mobile communications network are American communications heavyweights AT&T Corp., Comcast Corp., Motorola Inc. and Tele-Communications Inc.
Eircell, the mobile division of the government-owned and operated telecommunications company Telecom Eirann, currently runs Ireland’s sole cellular network.
Originally the applications were due June 23. In view of complications, including a quandary over license fees, Minister Michael Lowry delayed the deadline. It had been decided previously that the second GSM operator would be required to pay fees up front and annually, but the government was undecided whether Eircell would be assessed fees as well.
Joe Jennings, in the department’s press office, said Eircell will be required to pay about $16.4 million up front and the second operator will be required to pay not more than about $25 million up front and perhaps much less. Annual fees were not disclosed.
Scoring the best deal for Irish consumers is Department Minister Lowry’s priority in selecting a candidate, noted the Department. Anderson Management International of Copenhagen will assist in scrutinizing the applications.
The prospective licensee consortia include: CellStar, a group comprised of Comcast International, with up to 60 percent equity, Irish national broadcaster Radio Telefis Eirann and a start-up company called GCI created to participate in CellStar, each with 15 percent equity and Bord na Mona, an Irish semi-state entity that develops peat lands, produces peat-based fuel and other horticultural and environmental products. Bord na Mona would have a 10 percent equity in the consortium, which said it would choose France-based Alcatel Alsthom Group to provide CellStar’s equipment.
Others applicants include Esat Digifone and partners Telenor of Norway, Communicorp Group Ltd. and some institutional investors; the Europhone Group, comprised of Investment AB Kinnevik, a subsidiary of Sweden-based Industriforvaltnings AB Kinnevik, Millicom International Cellular of Luxembourg and an independently administered Trust for Irish investors; Irish Cellular Telephones, a group led by Princes Holdings Ltd. and including Tony O’Reilly’s Independent Newspapers, an AT&T division, TCI, United, Philips Communications NV, Irish semi-state Shannon Development and Riordan Communications Ltd.; Persona, which includes ESBI Telecom Ltd., a division of Irish semi-state Electricity Supply Board, Motorola International Network Ventures Inc., Sigma Wireless Networks Ltd. and Unisource NV; and finally Irish Mobicall Ltd., comprised of SBC Communications Inc.’s subsidiary SBC International Ireland Inc., Detecon Deutsche Telepost Consulting GmbH, Danish Tele Danmark International and Irish financiers Martin Naughton, Lochlann Quinn and Kieran Corrigan.
