EIRCELL, a wholly owned subsidiary of Telecom Eireann, has purchased a mast for £90,000 from Cablelink, which is itself controlled by Telecom Eireann, according to telecommunications industry sources. The average price for renting space on a mast from companies such as the ESB, RTE and Coillte was cited this week as around £4,000 a year, although masts in densely populated areas are worth more.
Eircell's bid far exceeded that of Esat Digifone, the sources added.
Eircell also confirmed last night that it transfers funds to its parent Telecom Eireann for the use of masts on Telecom property, but refused to say how much.
Cablelink said last night it would "not confirm the exact amount aid for the site in the north Dublin suburb of Sutton, but was "delighted" that Eircell had put the value it had con the mast. A spokeswoman said that both mobile phone companies had made sealed bids to Cablelink's solicitor for the site, and that Eircell had bid the most.
Because Telecom Eireann owns 75 per cent of Cablelink, the firm went to special lengths to make sure that the procedure was seen to be above board, the spokeswoman added.
A spokeswoman for Eircell last night said that the bids had been made under the strictest commercial scrutiny but refused to confirm that the company had paid £90,000.
The company had no further comment to make on the purchase of the mast, she added.
The spokeswoman also said that because Eircell was a separate subsidiary of Telecom Eireann, it paid the parent company for the use of its masts, but declined to say how many, or how much they cost.
"The value of a site is totally dependent on the location," she said.
There were many factors influencing the commercial value of a mast site, she added, including the local population density and access roads.
A spokesman for Telecom Eireann said that Eircell had located "quite a amount" of its masts on Telecom Eireann property, and paid "normal market rates", but was unable to provide any cost figures.
Esat Digifone refused all comment on the Sutton purchase, except to state that it had succeeded in reaching a co location deal with Eircell on the mast.
