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Vodaphone Ducks 3G Licence Payment In Ireland

by Jason Gorringe, Tax-News.com, London

16 August 2002

Payments were due on Wednesday in Ireland for 3G licences and BT spin-off O2 Ireland coughed up a first tranche of EUR44.4m for its 'B' license, which will cost a total of EUR114.1m over 15 years. The license places minimum requirements on the company for 33% demographic coverage by the end of June 2006 and 53% demographic coverage by the end of June 2008. The O2 Group already has 3G licences in the UK, Germany and the Netherlands.

Vodaphone, however, failed to make its EUR44 million payment to Ireland's telecoms regulator on Wednesday, and asked for a one-month delay. A Vodafone spokeswoman said the company will introduce 3G in Ireland, but there is nevertheless speculation that the company may be rethinking its commitment to build a 3G network in Ireland.

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