Breakthrough in dispute between Eircom and Doyle on DSL system

Irish consumers may be able to use new high-speed internet technologies from May following a major breakthrough in a six-month dispute between Eircom and the telecoms regulator.

The two parties are close to concluding a deal that would reduce by one-third the price Eircom would charge other operators to use its local telecoms network to supply these new services.

Eircom had planned to charge other operators €75 per month to enable them to supply internet services over its new digital subscriber line (DSL) network. But it is understood the two parties will now agree a fee closer to €50.

DSL technology, which is widely available throughout the US and Europe, enables consumers and businesses to connect to the internet up to 10 times faster than normal internet connections. It is considered a vital ingredient by industry and the Government to boost e-commerce and the State's competitiveness for investment.

The introduction of Eircom's high-speed internet product, i-stream, was blocked last year by the regulator, Ms Etain Doyle. She ruled Eircom's proposed wholesale charges were too high and would not enable competitors to compete in the provision of these new broadband services.

But at a US-Ireland e-Logistics forum held yesterday at Farmleigh House, Ms Doyle said the dispute should be concluded shortly. After the conference she told The Irish Times that "intensive discussions were ongoing" but she would not comment further on the issue. Eircom refused to comment when contacted.

Industry sources said talks between the parties were close to conclusion and negotiations were being conducted on a final wholesale price that would probably be close to €50, almost one-third less than the original figure of €75.

Both Eircom and the regulator have come under strong criticism from industry over the delay in the roll-out of DSL technologies in the Republic. The compromise deal on wholesale charges would enable Eircom to introduce its proposed i-stream DSL service before the end of May.

It is believed Eircom is anxious to agree a deal before its main competitor, Esat Telecom, begins trials of its own high-speed internet service in Limerick. Esat is engaged in a separate process with the telecoms regulator to enable it to begin testing DSL shortly.

Meanwhile, Ms Doyle told the e-Logistics forum yesterday she was concerned about the high cost of mobile origination and termination rates in the Republic. She said these charges, which mobile phone companies levy on consumers and other operators respectively, were too high. Ms Doyle is expected to move to reduce the price of mobile calls here shortly.

Figures released by the regulator's office yesterday show almost four out of five people in the Republic own a mobile phone. The survey found there are now 2.9 million mobile subscribers in the State.