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Mobile multi-band will serve rural areas

Fears that rural dwellers could lose out when a new multi-band spectrum for mobile phones is rolled out have been downplayed.

The Commission for Communications Regulation, ComReg, is obliged to ensure the efficient management and use of the radio frequency spectrum — but a 70% population obligation has led to fears that successful bidders for new licences will concentrate on large urban areas, to the detriment of rural areas where 30% of the population live.

However, Communications Minister Pat Rabbitte said that ComReg is adamant that difficulties will not arise — for a number of reasons. First, the infrastructure is in place and the masts have already been erected. Second, the obligations on Vodafone, 3 and O2 in respect of 3G services were greatly exceeded. Third, mobile telephone companies are already competing to provide services, and there is no question of a diminution of that competition, said the Minister.

“The 70% idea arose principally because it was considered desirable that such a large figure be a requisite to prevent cherry-picking by a new entrant to the market. A new company would not be able to pick populous urban centres while avoiding regional, provincial or rural areas,” said Mr Rabbitte.

ComReg expects coverage levels will exceed the 70% population obligation by a considerable margin, given the competitive nature of the market and the limited risk of roll-back of coverage from the existing levels. For example, for third generation or 3G services, Vodafone’s coverage covers 90% of the population, 5% more than its obligation. Hutchison 3G, better known as “3”, covers 96% of the population, 11% more than its obligation. O2 also covers 90.5% of the population, which is more than its obligation. The national broadband schemes are scheduled to bring basic broadband service to all areas by 2013.

“While the outcome of the forthcoming multi-band spectrum release process can not be anticipated, I understand ComReg is not expecting any reduction in coverage as a result of this process,” said Mr Rabbitte.

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