Brussels to begin 3G dialogue across Europe

The European Commission will open a dialogue with member states, telecom operators and equipment manufacturers to explore ways to facilitate the roll-out of third generation telecoms (3G) networks across Europe.

In a report issued yesterday the Commission said one of the issues which needed to be looked at closely was the conditions to be met to allow network infrastructure sharing between operators.

Sharing infrastructure would enable mobile phone operators to cut the costs associated with building new networks.

The dialogue, which is being developed by the EC to promote wireless technologies in Europe, follows the announcement by several firms that they will delay the introduction of 3G due to the cash crisis affecting the telecoms sector.

The technology enables companies to provide users with a range of mobile Internet services over mobile devices.

Mr Erkki Liikanen, European Commissioner responsible for Enterprise and Information Society, admitted yesterday there was "some uncertainty" affecting the sector but claimed 3G technology was built on firm foundations.

Media reports which suggested the Commission would urge governments to delay the debt payments towards 3G licences were denied by a commission spokesman.

European telecoms companies faced huge debt burdens for third generation licences across Europe last year.

Last night both Eircell and Esat Digifone said the EC communication should persuade the Irish telecoms regulator and the Minister for Finance to set a reduced fee for 3G licences in the Republic.

"[They] should now be looking at very much reduced fees and licence conditions which take account of the current telecoms climate, the size of the Irish market, the number of players and the very high costs associated with providing 3G services," said an Eircell spokeswoman.

A dispute between telecoms regulator, Ms Etain Doyle and the Minister for Finance, Mr Charlie McCreevy, over the price for the licences - which enable operators to provide high-speed mobile Internet services - is still unresolved.

It is understood Mr McCreevy favours a price of some £400 million (€508 million) for the four licences on offer while Ms Doyle favours a significantly lower tariff. The disagreement has delayed the tender process by three months.