Eircom Says It's Exploring All Mobile Re-entry Options

DUBLIN -(Dow Jones)- Eircom Group PLC (EIR) said Friday it's exploring all options for its re-entry into the mobile phone market, which includes third-generation license.

The Irish communications regulator ComReg said late Thursday that it'd received a formal expression of interest in the last remaining 3G mobile license.

"We remain engaged on all aspects of potential re-entry routes," a spokeswoman said, but refused to deny speculation that Eircom is eyeing the last 3G license.

Eircom has said it's three alternatives for re-entering the mobile market: 3G, acting as a Mobile Virtual Network Operator or buying Meteor Communications, which has no 3G.

Analysts say the estimated 3G cost would be an upfront license payment of around EUR50 million and initial infrastructure costs of around EUR150 million.

This is considerably less than the EUR270 million to EUR400 million value analysts put on Meteor, which is being sold by its U.S. parent Western Wireless Corp. (WWCA).

Vodafone PLC (VOD) offers a 3G service, but 02 Ireland, a unit of MM02 PLC (OOM) and Hong Kong's Hutchison Whampoa Ltd. (0013.HK) have yet to roll out their 3G services.

Merrion Stockbrokers analyst Brid White believes it would be difficult and expensive for a company to make "a compelling return on a fifth mobile network in Ireland."

But she said a combination of Meteor and the final 3G license would help a new Meteor owner move from the existing pre-paid market into the more lucrative post-paid market.

Company website: http://www.eircom.ie

-By Quentin Fottrell, Dow Jones Newswires; +353-1-6762189; quentin.fottrell@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 17th June 2005