RTE talks to transmission staff about share options

RTE has entered discussions on the introduction of a share option plan for workers in its transmission network. If successful, the 90 staff could gain significant sums if the network is sold to the private sector, as planned, before summer.

Estimates suggest the plan could be worth between £16,667-£38,889 per person. Represented by SIPTU and the Seamen's Union, the workers are seeking compensation to leave their State jobs.

Though the talks are at a tentative stage only, it is thought workers will be offered an employee share option plan (ESOP) or a lump-sum cash payment.

It is understood the broadcaster may offer a 5 per cent share in the transmission network. As with similar arrangements at other State companies, no money would change hands for this stake.

AIB is believed to have valued RTE's network at £30 million, although RTE's valuation is understood to be about £60-£70 million, if not more.

While the ultimate value of the network will be determined only when it is sold, these estimates suggest the tranche available to the group of 90 workers will be worth £1.5-£3.5 million.

The transmission system is being sold as part of the introduction of digital television services. These will be distributed via "multiplex" channels. RTE, TV3 and TG4 have secured multiplex licences and others will be issued by the Director of Telecommunications Regulation, Ms Etain Doyle.

Legislation which must yet pass the Seanad stage of the Oireachtas allows RTE to retain up to 22 per cent of the network, with 72 per cent going to the purchaser.

Groups such as NTL, the multinational that owns the former Cablelink, and Chorus, part-owned by Independent News & Media, have emerged as potential buyers of the network.

French group TDF and US-based Crown Castle, which has significant interests in Britain, are also considered to be likely bidders. US group America-Tel is another potential bidder.

One analysis suggests NTL's decision this month to delay rolling out its high-speed digital network in Dublin will prove a boon to RTE. NTL's service would be seen as a natural competitor to the State broadcaster's network, because it plans to develop similar digital capacity.

While purchasers of the network will secure fee income from its broadcast services, they could also use it as a broader telecommunications system for mobile phones, for example.

The RTE mast system has about 130 sites, although not all are in full use. Faced with financial losses this year and last, the State broadcaster has sought to increase its licence fee to £120 from £70. The Minister for Arts, Heritage, Gaeltacht and the Island, Ms de Valera, is expected to decide on its application before the end of next month.

She is believed to be assessing a report by consultants PricewaterhouseCoopers, who recently completed a study on the application.