Eircom has paid €44.4 million to the telecoms regulator ComReg in the first instalment of a €114.3 million licence fee for the State's final third-generation (3G) mobile phone licence.
The former State firm has been told by the regulator that its forthcoming 3G service must reach 33 per cent of the population by September, 2008 and 53 per cent by September, 2009.
Eircom will offer the service through its mobile unit, Meteor. Under the terms of its licence, Eircom is obliged to have 83 per cent demographic coverage for the 3G service by the end of October, 2012.
Payment of the remaining €69.9 million of the consideration of the licence will be made in instalments over the next 15 years. In a statement, Eircom said it had "confirmed to ComReg that the necessary performance guarantees associated with the 3G licence" were in place.
"In return, Eircom formally received the fourth 3G licence from the regulator. As part of the process, Eircom paid the first instalment of €44.4 million for the licence fee which totals €114.3 million."
The licence now held by Eircom was originally awarded to Smart Telecom, the firm that lost its entitlement to the licence when it submitted only draft performance bonds to ComReg. The High Court later upheld ComReg's decision to withdraw its offer of the licence.
"ComReg welcomes the addition of a fourth 3G operator to the marketplace, which will offer consumers additional choice, and, in turn, strengthen competition," said the regulator.
Eircom's rivals in the 3G arena include Vodafone and O2, the dominant mobile players that occupy the top two market positions ahead of Meteor. The other rival is 3, controlled by Hutchison Whampoa.
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