Cable television and MMDS operators would openly compete with each other, under the draft terms for new licences issued yesterday by the Telecommunications Regulator, Ms Etain Doyle.

Under the proposed scheme the Regulator will also have absolute discretion over whether licences should be renewed, although the renewal period has not yet been decided.

The consultation paper released by the Office of the Director of Telecommunications Regulation (ODTR), says the granting of one licence shall not prevent the Regulator issuing other licences in the same area.

This would signal an end to the current situation whereby cable television and MMDS companies each have monopolies in their service areas. Significantly, the document mentions no period of exclusivity either.

Sources within the cable industry have expressed strong dissatisfaction with some of the proposals, and are already believed to be considering legal action following earlier indications from the Regulator that they would have to re-apply for licences to provide services in the areas in which they operate. The cable and MMDS companies are also unhappy with the suggestion of competition.

The new licensing proposals are also likely to have an impact on the sale of Cablelink, as any purchaser will want a clear ruling on the licensing terms of the organisation they are buying.

The ODTR also proposes to regulate the prices charged by operators with monopolies or with "significant market share" in their service areas. Where there is sufficient competition, prices will be set by market demand.