Bord Gais and Norwegian state telephone company Telenor are engaged in discussions with a view to developing a new telecommunications infrastructure.
According to telecoms industry sources, the talks, which have been ongoing for several months, are exploring the possibility of building a telecommunications network using the old gas networks which predate the natural gas network.
One of the largest expenses in laying fibre optic cables is the digging of streets to lay ducts. However, prior to the installing of the current natural gas network, the then gas companies had networks of pipes in Dublin, Cork, Limerick, Waterford, Kilkenny, Drogheda and Clonmel. These could now be used as ducts for the rapid and comparatively cheap development of high-speed broadband networks.
The impending deregulation of the telecommunications market is intended to stimulate competition and encourage investment in broadband infrastructure. The Government has identified this as a priority as it wants Ireland to become a European hub for e-commerce.
While some sources say the discussions are still at a preliminary stage, others suggest meetings had been ongoing for about six months. They say that though no deal has been signed, a provisional agreement has been made with Ericsson to provide the equipment.
A statement from Bord Gais yesterday said it has received approaches from several international parties interested in forming alliances to enter the Irish telecommunications market.
"The discussions are ongoing," it said, but "Bord Gais is not in a position to confirm or deny speculation regarding the identity of specific potential partners, except to say there are a number of options open should it proceed in this area". A spokesman for Telenor would not confirm discussions with Bord Gais were taking place, but said the company "is talking to a variety of people". He said the company, which employs around 250 people in various operations here, is continuously looking to develop its business here.
In another development, one of the world's biggest Internet service providers (ISP) will announce in a few weeks time it is establishing a presence here. UUNET, owned by global telecommunications giant WorldCom, is expected to set up an international point-of-presence (POP) in Dublin, creating around 30 additional jobs in WorldCom's existing Dublin office.
The company will supply services to corporate customers and other ISPs via two 45 megabit per second international links. It already supplies Ireland On-Line and Indigo.
The UUNET announcement comes on top of yesterday's Cable and Wireless announcement that it is to enter the Irish ISP market. The current rash of interest in the Irish Internet market is believed to be partly due to the impending sale of Cablelink. Cable and telecommunications companies are likely to want some established Internet business here in order to enhance their prospects of buying Cablelink when it goes on sale later this year.
