Vodafone Ireland will begin offering third-generation (3G) mobile services today when it switches on a new network that will cost €1 billion to complete.
It is believed the new mobile phone service will initially only be available to certain key business users that already subscribe to the Vodafone network.
Third-generation services will be available to consumers when a greater number of handsets are available and some technology problems are ironed out.
Third-generation technology enables firms to offer multimedia and video services to mobile devices.
Initially tipped to be a huge commercial success, European firms paid almost €130 billion to acquire licences for the right to provide the services.
Vodafone Ireland's decision to introduce its 3G service - even if it is initially a limited service - places the Republic among the leading European states in terms of the technology.
Just one British operator, Hutchison 3G, is currently offering a commercial service, and several European operators, including Vodafone and O2, have delayed 3G launches in Europe.
Industry sources believe that Vodafone Ireland has moved quicker than other operators to introduce 3G because of strict roll out conditions in its licence.
The competition to award 3G licences in the Republic enabled firms to bid aggressively against one another on introduction targets for the new technology.
Observers believe Vodafone set very tough targets in relation to its roll-out commitments and could face hefty fines if it fails to roll out the 3G service on time.
It recently admitted that it had asked the telecoms regulator to relax the terms of its 3G licence. The regulator subsequently refused to relax the conditions.
Vodafone Ireland has agreed to pay €114 million over 15 years to acquire a licence to provide 3G in the Republic. It will face competition from two other 3G licence holders, O2 Ireland and Hong-Kong-based conglomerate Hutchison Whampoa.
Initially viewed as a licence to print money, companies are now viewing their 3G investments with a greater deal of scepticism.
Technical difficulties and a continued lack of availability of handsets has dogged the introduction of Hutchison 3G's service in Britain, which is branded "3".
Hutchison is offering a range of new services using 3G technology including video conferencing on mobile devices and video clips of premiership goals.
In contrast to Hutchison's consumer offerings, it is believed Vodafone will initially develop business applications for its 3G service in the Republic.
