Esat signed a landmark agreement yesterday enabling it to offer telecoms and high-speed internet services over Eircom's local telecoms network. The deal will give Esat access to one of Eircom's local telecom exchanges and should create a framework for full "local loop unbundling".

Unbundling describes the process of opening an incumbent telecoms operator's local telecoms networks to competition. Although it has been mandated by the European Union since January 1st, no competitor has yet gained access to Eircom's network.

Yesterday's agreement allows Esat to locate digital subscriber line technology in an Eircom exchange in Limerick and the firm should be able to offer high-speed internet and telecoms services to consumers in the area within three to four months.

The 150-page agreement between Eircom and Esat contains hundreds of technical details laying out the ground rules that enable Esat staff to enter exchanges and install equipment.

Esat will install asymmetric digital subscriber line technology in the Limerick exchange. This provides high-speed internet access over ordinary copper telecoms wires into buildings. It will also install symmetric digital subscriber line technology, which will allow it to offer medium-sized firms leased line-type services at prices very much reduced.

Mr David Taylor, director of regulatory affairs at Esat, said the agreement was the first major step on what has been a very long road.