UTV Internet launched a selection of flat-rate internet packages aimed at consumers yesterday following Government intervention in the telecommunications market, writes Jamie Smyth, Technology Reporter.

The move coincides with the introduction of a regulatory initiative which is forcing Eircom to offer wholesale flat-rate services to rival telecoms companies.

UTV Internet will offer users either a 30-hour dial up internet package for €9.99 per month or a 180-hour package for €24.95 per month.

Esat BT and Eircom will also shortly begin offering flat-rate services, which provide dial-up internet services for a monthly flat-rate fee rather than charge users by the minute. This method of charging is intended to promote greater use of the internet among consumers by removing the fear of large phone bills.

It is expected that all the providers will cap the new flat-rate services for a set number of hours rather than offer users unlimited access to the internet.

This follows recent moves in Britain where providers of flat-rate internet have set time limits to prevent users staying continuously connected to the internet.

Some firms had complained that users were unnecessarily overloading networks by staying connected to the Web even when they were not using it.

Mr David Long, chairman of IrelandOffline - a lobby group which has campaigned for more than a year for the introduction of a flat-rate internet - said the services were hugely important.

"The most important thing is that this removes the fear of the big phone bills," he said.

The Minister for Communications, Mr Ahern, said the new services would increase internet use and promote high-speed broadband internet services.

Earlier this year Mr Ahern took the unusual step of directing the Commission for Communications Regulation (ComReg) to force Eircom to offer a wholesale flat-rate product to enable other firms to offer flat-rate products.