Eircom told it must open network to competitors

Communications minister Noel Dempsey said yesterday the Government would consider changing the law if necessary to get Eircom to open its network to competitors.

Speaking at a telecoms industry conference yesterday, Mr Dempsey said the Government believed it was vital that Eircom allow its competitors access to the lines connecting its exchanges with consumers and businesses.

Opening up this link, known as the last mile or local loop, is considered vital to the development of broadband - high speed internet access - in the Republic.

The State has one of the worst levels of broadband development in the EU and this is damaging its ability to attract new investment.

Mr Dempsey said encouraging the process, known in industry jargon as local loop unbundling, was a Government priority.

"I have made it clear on a number of occasions to both the regulator, ComReg, and Eircom, that the Government regards local loop unbundling as extremely important," he said at the Telecommunications and Internet Federation conference at Dublin Castle. "I am very anxious to see it brought forward quickly and efficiently.

"As far as the Government is concerned, the fastest roll-out possible is necessary. If that includes or entails changes or legislation, then that will be fully considered by the Government," he said. This week, Eircom, gave ComReg its plans for opening up access to its competitors, who have criticised the proposals for not going far enough. Mr Dempsey said he had discussed the document with ComReg.

Eircom argues in the document that broadband development is not necessarily connected to opening up the local loop, while its competitors say it is.

Broadband will allow the development of new services, like the use of the internet for phone calls, which would result in a dramatic cuts in telecoms costs for businesses and consumers.

Danny McLaughlin, the chief executive of one of Eircom's biggest customers, BT Ireland, revealed yesterday that the UK-based group had just decided to launch a new network, called 21C throughout the island of Ireland. This will make a range of broadband-based services widely available and facilitate the development of new products and services.

BT is likely to launch the service in early 2007, broadly around the time that Eircom has said it will have resolved at least one of the problems surrounding the opening up of its network.

Mr McLaughlin warned that poor broadband take-up posed an economic threat to the Republic.

He pointed out that, according to the Organisation for Economic Co-operation and Development (OECD), the Republic ranks 19th of 22 developed countries for broadband take-up.

"We have a long way to go," he said. Mr McLaughlin warned that failure to tackle the problem would have a catastrophic effect on the economy.