Comments welcome on our thoughts re: 3G license process in Ireland:
On Tuesday 18th December 2001, the Office of the Director of =
Telecommunications Regulation (ODTR) finally launched the competition =
for the selection of third generation (3G) mobile phone licenses.
=C2=B7 In reaching this clever compromise, the ODTR has learned from =
mistakes made elsewhere. Its innovative solution will add significant =
value to telcos and their customers. The access fees may look expensive =
today. However, I believe that within 5 years they will have become a =
license to print money! It is not so long ago since the doomsayers were =
similarly predicting that telcos would never recover their investment in =
GSM!
=C2=B7 In any event, given the importance of 3G to the development of =
telecoms infrastructure in Ireland, the ODTR could not have offered the =
licenses for much less. Instead, the pricing structure places a =
financial obligation on successful bidders to quickly rollout their =
networks.=20
=C2=B7 The conditions with which Irish players have to contend are =
considerably more favourable than those faced by their European =
counterparts. For example, over the past two years alone, companies =
spent some =E2=82=AC50 billion for licenses in Germany and =E2=82=AC40 =
billion for licenses in the UK. In contrast, Irish bidders have =
received generous terms with a differentiation in fees, deferred payment =
and a twenty-year payback period.
=C2=B7 At least one license will be awarded to a green field operator =
rather than an incumbent. This will prevent existing players from =
preserving the status quo and continuing to earn considerable revenues =
from the existing networks. Experience in the UK and Germany has =
already shown that the green field operators will offer innovative =
services and competitive pricing to entice customers to take up the new =
wave of technologies.
=C2=B7 However, one of the biggest risks facing successful bidders will =
be environmentalists=E2=80=99 objections to the erection of new masts. =
3G operates at higher frequencies which do not travel as far as GSM. =
This means that many more masts are required. However, the higher =
frequency also requires that the transmitters are located closer to =
ground level and as such may not be regarded as masts by the planning =
regulations. Recent protests against 3G transmitter sites in Germany are =
an indication of what is to come in this country.
=C2=B7 The over marketing and under performance of WAP has created a =
cynicism about 3G=E2=80=99s prospects. In reality, 3G offers real =
benefits to users, including superior quality audio. The new 3G =
networks will resolve the capacity bottlenecks which are becoming more =
commonplace as current networks struggle to cope with the volume of =
users.=20
www.alatto.com
Received on Thu Dec 20 12:43:21 2001