Meteor is planning a €70 million expansion of its mobile network, in a move that will enable the company to extend its coverage to about 94 per cent of the population by the end of 2004.
Meteor is planning a €70 million expansion of its mobile network, in a move that will enable the company to extend its coverage to about 94 per cent of the population by the end of 2004.
The State's third mobile operator will also introduce a technology called EDGE to its network. This will enable Meteor's customers to use a variety of new multimedia services such as mobile gaming and video clips.
Meteor management believes the decision to invest heavily in its mobile network will pay off by boosting its attractiveness to customers. Since launching in 2001, Meteor has claimed just 5 per cent of the mobile phone market.
It is understood the company will sign a four-year deal with Ericsson within the next few days, which could be worth up to €70 million. This contract will see Ericsson install new equipment throughout Meteor's entire mobile phone network.
The decision to appoint Ericsson as a supplier follows a decision by Meteor's existing supplier, Lucent, to pull out of the GSM market. Instead, Lucent has decided to focus on newer third-generation technologies (3G).
Mr Ultan Ryan, an Irish telecoms consultant, said the new equipment should not pose any major compatibility problems for Meteor. He also said that by using EDGE technology, Meteor would be able to offer customers a service almost as good as 3G, at a fraction of the overall cost.
EDGE technology is being installed by many US mobile firms and in some cases has been branded as a new 3G technology. It offers download speeds similar to that of 3G, although 3G technology is expected to become considerably faster in the future.
Western Wireless, Meteor's parent company in the US, is bankrolling the investment and has plans to spend at least €50 million on Meteor during 2004.
Meteor's latest results for 2002 show it spent €10.8 million in 2002, a sharp drop from the €46 million spent in 2001. Meteor's capital expenditure in 2000 was €55 million, when it began to build out its mobile network.
Western Wireless is increasing its network investment in Meteor following a decision to look closely at spinning off all its international operators into a separate listed company. It is likely that Western Wireless management wants its Irish investment to pick up more subscribers before more competitors enter the mobile market later this year.
Hutchison Whampoa should launch its "3" mobile phone service later this year.
