The Commission for Communications Regulation (ComReg) is planning to allow competitors to use Eircom's leased line telecoms circuits to serve customers.
The strategy, which was outlined by ComReg, chaired by Ms Etain Doyle, in a discussion document yesterday, will vastly increase the ability of alternative firms to compete with Eircom in the lucrative leased line market.
Leased lines are high-capacity telecoms cables that enable companies to use broadband internet services. They are critically important to increasing the competitiveness of the Irish economy.
Until now, competitors to Eircom have often been forced to wait for long periods to deliver a leased line circuit to customers as Eircom often insisted that it remove its own leased lines before it delivered any new leased lines.
Under ComReg's strategy, Eircom will have to transfer its existing leased line to a competing operator without any break of service. This will provide major benefits to customers and should be less costly to alternative telecoms operators.
Esat BT, the biggest rival to Eircom in the telecoms market, welcomed the decision last night, describing it a key method of promoting further competition.
MCI, another competitor to Eircom which was formerly known as WorldCom, said it welcomed the new plan.
Eircom, which is likely to face much tougher competition in the business market following the new strategy, did not comment.
ComReg, which has been in talks with Eircom for months on the proposal, said it required the introduction of the new leased line strategy without delay.
Meanwhile, ComReg also plans to increase the charges that telecoms firms pay for using certain parts of the radio spectrum.
If the Government agrees to sanction the new ComReg proposal, operators in Dublin will pay more for the right to use fixed point-to-point radio links.
ComReg said this would encourage firms to upgrade their technology to make more efficient use of the radio spectrum.
This could also free up radio spectrum so it could be used for other purposes, said ComReg.
