Consumers can look forward to a more rapid availability of Internet and data services, following the announcement yesterday that a number of telecoms companies have been given the go-ahead to use wireless technology.
The technology, known as wireless-in-the-local-loop, will connect business or residential customers to their local exchange using radio-based technology. The technology will permit faster speeds in transferring data, especially for corporate customers, and will give residential customers basic telephony and faster Internet and e-commerce access.
The licences were awarded by the telecommunications regulator Ms Etain Doyle, who said they should make a significant contribution to "quality, competition and prices in the telecommunications service market in Ireland".
The licences enable companies to provide services to both urban and rural customers very quickly in a cost competitive manner.
Four companies - Eircom, Esat Telecom, Princes Holdings (the cable group) and the US headquartered Formus Communications - were awarded broadband wireless-in-the-local-loop licences. There were six applicants in this category and there was surprise last night that Ocean, the joint venture telecommunications company of ESB and British Telecom, had failed to secure a licence.
The other unsuccessful candidate in this category was Broadnet Ireland Limited (BNI). It is a wholly owned subsidiary of Broadnet Holdings BV. Broadnet is 80 per cent owned by Comcast International Holdings - a wholly owned subsidiary of the Comcast Corporation and 20 per cent owned by European Telecommunications Holdings, a company associated with Galway-based businessman Mr Declan Ganley.
Eircom, Esat and Princes Holdings were also awarded narrowband licences, an alternative to copper-in-the-local-loop which currently connects the majority of residential and business customers to their local exchange. It will offer mainly basic telephony, Internet, e-commerce and ISDN (high speed) connections in urban and rural areas. It is understood that all of the applicants spent several months in detailed preparation before submitting their bids. Each applicant had to present an extremely detailed plan of how it would use the licence which runs for 10 years. Each applicant also had to pay £375,000, refundable if they were unsuccessful.
Esat chairman Mr Denis O'Brien said his company was delighted to be awarded the two licences. "It dovetails with our strategy to build fibre in all major towns and cities and completes the host of technologies we want to deploy," he said. Mr Willie Fagan, Princes Holdings' director of regulatory and legal affairs, said his company was delighted with the outcome. He said it now made Princes a national player. The company will also be able to deploy interactive services for its 100,000 MMDS customers.
An Eircom spokesman said the company was extremely pleased with the outcome. He rejected some industry criticism that the dominant player had been awarded licences in two categories. " Our success in achieving two licences reflects our expertise and leadership position in the marketplace - and the quality of our submissions," he said.
Ocean chief executive Mr George McGrath admitted the company was very disappointed at not having won a licence. "We put a lot of work into the application, but I suppose somebody has to lose."
He said it would not deflect Ocean from its current business strategy.
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