Four years after the public was first promised access to the latest broadband technology there are signs that the service is finally becoming more readily available. Eircom, Esat BT, NTL and a small number of wireless and satellite telecoms operators are now offering the high speed Internet service in most cities and large towns throughout the State.
Almost 80,000 businesses and consumers have so far signed up for broadband, which offers "always on" access to the Internet at speeds 10 times faster than dial up services.
Wider availability, sharp reductions in price and aggressive marketing campaigns have clearly spurred demand for the service, which is a critical tool for home working and small businesses. However, persistent consumer complaints about the lack of availability of broadband in small towns and some urban centres illustrate a broadband bottleneck still exists. Recent figures published by Eircom, the dominant operator which owns all the wires running into homes, show broadband is potentially available at 841,000 of their 2 million line connections.
Poor quality lines in some areas and a technical barrier whch prevents Eircom's current broadband technology from stretching farther than four kilometres from a telephone exchange are key factors frustrating tens of thousands of consumers across the country. Often, there is no reliable indication when a service might be provided.Eircom is spending €85 million on a three-year strategy to maintain and upgrade its network and has defended its capital expenditure policy. Its high debt level remains a constraint on the amount it can invest.
Progress is being made, but we are coming from behind after a period of under-investment. Part of the blame must rest with the Government, which failed to deal with the broadband issue when it privatised Eircom and set up a regulatory structure. This has hampered the Government's policy to establish Ireland as a European "e-hub". In an effort to address this, the State is now investing in broadband provision as part of a campaign to boost availability and encourage competition.
Eircom's recent bullish comments about its own strategy also mask a lack of competition for ADSL services, the most common type of broadband. There are still key regulatory issues to be addressed in relation to access to parts of Eircom's infrastructure.
Eircom's roll out of broadband should be welcomed, as should the Government's funding of this area. However Ireland is unlikely to become a real "e-hub" unless there is a higher level of investment, competition is encouraged and regulation is better supported by the State.