THE Minister for Communications, Mr Dukes has issued guidelines on the partial liberalisation of the telecoms market, which comes into operation on July 1st.
However, Esat Telecom, which is to build its own alternative network, at a cost in excess of £20 million, has said the EU derogation which Ireland was granted from full liberalisation can no longer be justified.
Esat's chairman, Mr Denis O'Brien, said residential users will have to wait until the year 2000 before reaping the benefits of competition. "This can only act as a deterrent on the infrastructural investment which a fully liberalised market would attract," he said.
From July 1st, companies such as Esat can build their own networks to provide fall services to business users. However, this cannot yet be done for the residential market.
Mr O'Brien referred to Telecom's latest financial results which showed it had revenues in excess of £1.2 billion and a debt reduction of £330 million last year. He said Ireland cannot afford a telecommunications policy, "the sole purpose of which is to maximise Telecom's value, rather than the welfare of telecommunications generally".
Mr Dukes issued a statement yesterday saying that the statutory instrument to give formal effect to liberalising EU directives on cable television and telecommunications is currently being finalised.
Telecom's rivals will also now be able to send fax and other data down their lines and will not have to lease lines from Telecom. The cable television network will also be liberalised to provide for telecommunications services.
It has also emerged that two Government departments are in discussions to see how Telecom's rivals can be granted access to public property to build their new networks. A Government source said that at present Telecom has a right of way on public property when providing the network.
Discussions are taking place between the Department of Transport, Energy and Communications and the Department of the Environment on the issue. He said the objective is to facilitate the development of the telecommunications structure and ensure that all parties are treated equally. A further announcement on the matter is expected shortly.
Mr Dukes said yesterday that a new licensing scheme would be introduced to cover the provision of alternative networks and that it would be consistent with the principles of EU principles. A new regulator for the telecommunications industry takes up office officially next month.
