The high costs of obtaining third-generation mobile licences in Europe could lead to significant ratings pressure on the credit quality of some European telecommunication companies, according to a new report published yesterday.

Moody's Investors Service report estimates third-generation development will cost companies upwards of €300 billion - €150 billion on the purchase of licences and another €150 billion on network construction.

A spokesman for Eircom said it would be impossible to transpose how the third generation would effect Eircom's credit rating at this stage.