THE COMMUNICATIONS regulator has confirmed it will auction the mobile spectrum used by Vodafone, O2 and Meteor to provide GSM services, when their licences begin to expire in 2011.
This could raise up to €182 million for the exchequer, according to recommendations in a consultants’ report published yesterday by ComReg.
The spectrum, which is in the 900MHz band, was previously reserved for GSM or 2G services, predominantly voice and basic data services.
The three operators also have 3G licences which can carry voice and high-speed data.
The recent amendment of a European directive which reserved this spectrum for GSM means the successful bidders will be able to offer a range of services including 3G mobile. The proposals published by ComReg yesterday confirmed it intends to proceed on this “liberalised” basis.
ComReg will auction the spectrum in blocks of 2 x 5 MHz, with each applicant able to compete for a maximum of 2 x 10 MHz blocks.
In effect this means a minimum of four companies will be awarded licences and a maximum of seven.
Each of the blocks has been priced at €26.1 million by DotEcon, the firm commissioned by ComReg to advise on spectrum liberalisation. The auction could take place in the middle of 2010, most likely through sealed bids.
Sources close to Hutchinson 3G Ireland, which trades here as 3, said it would bid for spectrum.
Vodafone and O2 both said it was too early to comment on the findings in the document published by ComReg yesterday.
“We are working through the document at the moment,” a spokeswoman for Vodafone said.
A spokeswoman for O2 said it was “reviewing” the document.
No comment was available from Meteor.
Vodafone and O2’s 15-year GSM licences expire in 2011 while Meteor’s runs until 2015. ComReg’s proposal means the Eircom subsidiary would be able to bid for its competitors spectrum in advance of its own licence expiring.
