The largest ever Irish privatisation will be the partial flotation of Telecom Eireann on the Irish Stock Market next year. Most stockbrokers are lobbying for the business and most have now issued assessments on the company's future performance and likely value when it comes to the market. For investors, the privatisation will be highly attractive and the Government is expected to include a scheme where Telecom customers will be encouraged to buy shares. In designing the scheme, the Government will consider similar flotations in other states, where in many cases, customers of telecommunications companies are invited to invest through loyalty schemes, where each would get a bonus share if the original shares were retained for a specified period. Customers are expected to be offered around 15 per cent of the shares. The shares will also be attractive to pension funds.

Half of the company's shares will be offered on the stock market, probably between June and December 1999. Stockbrokers are broadly very positive on the company's future prospects.

Even though it will shortly have to face competition in the Irish market and will probably lose some customers, it is expected to retain up to 70 per cent of its customer base. Over the next 10 years, some brokers predict Telecom Eireann will even double its revenue base. Also in the telecommunications sector, investors continue to show great interest in Esat. The shares have performed strongly recently and are being mopped up by investors, many of whom believe it will eventually be taken over by a larger player.