Competition still slow in fixed-line phone market

Competition in the fixed line telephone market continues to prove difficult, with 81 per cent of companies naming Eircom as their primary provider.

The figures are contained in a new e-business survey carried out on behalf of business body Chambers Ireland and regulator ComReg.

There also seems to be inertia in the market, with 68 per cent of the 611 companies surveyed saying they have never switched their provider. The main reasons for not switching were satisfaction with current service (77 per cent) and satisfaction with current price (32 per cent).

Of those that have switched, 52 per cent subsequently moved back to their original supplier.

The market is more balanced for mobile communications, with Vodafone cited as the main mobile provider by 55 per cent of companies. Other than text messaging, the use of data services is extremely low, although large organisations are more likely to use mobile e-mail and other data services.

The survey also found that just 37 per cent of companies are aware that they are liable for the online activities of their employees.

On broadband, 65 per cent of Irish businesses with an internet connection are now using a broadband service. Among other companies, various reasons are cited for not moving to a faster service but of those who have attempted to upgrade to broadband, over a third said they are waiting to be connected by their supplier.

The report found that 79 per cent of Irish businesses now have internet access, with e-mail (89 per cent), web browsing (37 per cent) and online banking (31 per cent), the most popular uses of the technology.

Chris Coughlan, deputy president of Chambers Ireland, said the report contained "overdue good news regarding the penetration of broadband".

The research also found that, despite the increase in use of mobile communications, 99 per cent of businesses still retain a fixed-line telephone service. Eircom remains the dominant provider with 81 per cent of firms saying it is their primary provider.

ComReg commissioner Mike Byrne cautioned that the strength of the economy meant that there had been little impetus for many Irish firms to look at alternative channels to market, such as the web and electronic communications. "As they say in the west of Ireland, 'I hope it stays fine for them'," said Mr Byrne.