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The deadline for accepting the "B" licence and payment of an initial fee of EUR44.4 million was midnight on 14 August. While O2 made the deadline, Vodafone requested an extension until the 12 September 2002, which the ODTR granted on Thursday.
Vodafone's decision to delay taking the licence has raised speculation that it does not want to operate its own 3G network in Ireland. Both Vodafone and O2 lost out to Hutchinson Whampoa for the top "A" third-generation mobile licence at the end of the June.
The "B" licence requires 53 percent demographic coverage by the end of June 2008 and will cost EUR114.1 million phased over 15 years. The "A" licence costs EUR27 million, runs for 20 years and requires 53 percent coverage by 2005 and 80 percent coverage by 2007.
According to a spokesperson for Vodafone, the company is continuing to look at its options in regard to taking-up the licence. "We decided to avail of the extension, as provided under the tender rules, because we wanted to take our time and give this decision very careful consideration. We have to make sure the decision we make is the right one for the company, our shareholders and customers," the spokesperson told ElectricNews.Net.
At the moment, the ODTR appears unconcerned about the Vodafone delay. "It was not a surprise because the tender document allows for an extension to be granted. We will see how the land lies after September 12th," said a spokesperson for the telecoms regulatory body.
Vodafone's hesitation in accepting the licence is likely to cause unease in Irish telecoms and government circles. Only three companies bid for the licences available and if Vodafone decides not to take up the ODTR's offer it would be a major set-back for 3G in Ireland as there does not appear to be any companies on the horizon who could take over the second "B" licence.
There has been recent speculation that Vodafone Ireland's parent, Vodafone plc, would scale back its roll out of 3G services across Europe. Vodafone, like many telecoms companies, invested billions of euro in winning such licences, but the recent downturn has led the firm to re-consider the value of doing so.
Despite all of this speculation however, Vodafone emphatically said earlier this month that its plans for 3G "remain on track."
But, several telecoms companies have already begun to rowing back on their 3G investments. For instance, at the end of July, Spain's Telefonica and Finland's Sonera took a total write-down of EUR9.2 billion on several of their 3G European operations. While other players in the field are looking to re-negotiate their licence fees.
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