Comment: After the recent turmoil surrounding Smart Telecom and the increased focus on the relationship between Eircom and ComReg, Irish business and consumers should take a step back and reflect on the current state of competitive telecommunications in this market.

First off, we should be clear that Ireland does not yet have a fully competitive telecommunications sector. I say this as the owner and chairman of the largest privately financed telecom company in Ireland and I am not alone in saying this.

Only this week, the National Competitiveness Council and Forfás highlighted that the Republic is still performing poorly in the broadband stakes. They point out that, despite the apparent competition in the marketplace, the incumbent operator - Eircom - has a 70 per cent foothold. This figure does not take into consideration the increased dominance at a wholesale level.

Some people find the accusation of no competition hard to believe. While there are seemingly dozens of competitors, the reality is that the vast majority are simply buying on a wholesale basis from the former monopoly and reselling it to the end customer. The actual product is effectively from the former monopoly in reality and is not a legitimate result of a competitive market.

There are some telling examples of how reality belies the illusion of competition. For example, the Government subsidises phone services for many people who need assistance, yet this subsidy is only provided if the person subscribes to the former monopoly as their telephone provider.

Furthermore, despite a decree from the EU parliament a number of years ago which stated that telephone subscribers who wished to change carriers could take their number with them, Eircom up to recently refused to abide by this law and even now says that it only has the capacity to handle a small number of such requests every day.

Even when a consumer chooses to change provider, they are forced to jump through numerous hoops. In fact, under current regulations consumers could be left without any telecommunication services for up to two weeks. The prospect of such an outage may discourage consumers from changing providers.

Other operators, such as Magnet Networks, are investing in their own network infrastructure, which in our case can provide internet, telephone and TV services through a single connection. That commitment and investment makes available the fastest broadband connection in the State with no contention while the former monopoly is limited to slower speeds and up to 48 people sharing one slow line.

This "forced sharing" by the former monopoly means that should you and your neighbours choose to use the internet at the same time, the effect of everyone competing for space means that each connection slows down to speeds less than dial-up. This is what I would call bogband, not broadband.

With the complicity of the regulator, Ireland has had the wool pulled over its eyes with this inferior product.

Today the internet represents a completely different reality to that envisaged by consumers a number of years ago. Its impact has touched on every corner of our society and the revolution is continuing unabated.

A raft of new services such as online gaming, iTunes, video conferencing and YouTube have sown the seeds for an entirely different level of demand that is not being catered for by Irish internet service providers due to the poor capacity that is available through the broadband product currently on offer.

A competitive sector requires customers who feel confident in selecting an alternative operator's services. It is up to the regulator and the Government to foster an environment where consumers will have faith in competitors and thereby be in a position to experience a superior product at a lower price.

The rest of the developed world has determined that today's inferior broadband product is not good enough. The people of Ireland have not taken a similar decision and adequately supported the competitors who provide a superior product at a lower price.

Business is tough. If a company doesn't pay its bills, at some point its supplier will quit extending credit, and that is perfectly legitimate. If consumers won't buy a competitor's product, then at some point the competitor will quit providing the product.

It is time for Ireland to decide whether it will honestly support competition or whether it just wants to talk about it for a few more years. As long as the former monopoly dominates the market and the regulator cannot, or refuses to, enforce a level playing field, Ireland will not have a truly competitive marketplace.

My great-great-grandfather and grandmother left Ireland more than 150 years ago in search of a better life. In 2003 I decided to invest back in Ireland and bring modern telecommunications at lower prices to today's Celtic Tiger. I don't think Ireland should settle for less. You should only settle for more. Support fairness and competition with your own actions, not just words, or you will lose both.

Ken Peterson Jr is executive chairman of Magnet Networks.