Tele2 enters phone market

The latest entrant to the country's fixed-line telecoms market is set to spend over €1 million on an aggressive marketing campaign in its bid to take on the country's established providers.

Swedish-based alternative telecommunications company Tele2 will formally launch its fixed-line services in this country today.

Speaking at a press conference yesterday, marketing manager Ms Sara Erickson said the launch would be supported by a campaign that would include television, newspaper and internet advertising, as well as direct marketing. The company would not put a figure on its planned spend, but it is understood that it will stretch to seven figures.

Tele2 will initially provide local, national, international and fixed-line to mobile calls to consumers and business users. Its managing director, Mr Mark O'Toole, said yesterday that it had a simple business model, based on competing on price with established operators.

He claimed it would offer discounts to Eircom's charges of up to 77 per cent. The company will use carrier pre-select, a system that allows providers to choose the cheapest wholesale operator. It will also operate from a low cost base, employing just six people here in its initial three months.