Esat BT's high-speed lines held up by local authorities

DSL (digital subscriber line) is the name given to a new technology that provides a connection between customers and a local telecom exchange. It enables high-speed internet and is considered crucial to attracting inward investment to the Republic.

Esat BT's plan to roll out new high-speed internet lines in Dublin and scores of towns in the regions is being delayed by several local authorities that are proposing hefty fees to dig up the streets.

The delays, which are being accentuated by long lead times set by authorities before digging can begin, could threaten Esat BT's ability to draw down Government funding worth €10 million. Under the terms of funding sanctioned by the former Department of Public Enterprise, Esat BT must complete its €40 million DSL roll-out by next year. If it fails to do this, the Government may not pay up.

It is understood Esat BT has contacted the Department of Communications, Marine and Natural Resources about the costs issue with the local authorities. The firm is hoping the Department can mediate with the local authorities.

The Irish Times has learned that at least one local authority has proposed charging the firm €250,000 to lay DSL lines - which offer businesses and consumers Net access at speeds up to 30 times faster than dial-up services. The towns where the highest street-digging fees are being proposed are believed to be Portlaoise, Killarney and Dun Laoghaire.

Mr David Taylor, director of regulatory affairs at Esat BT, would not comment on the detail of the issue yesterday. However, he said he hoped that current "issues" with a handful of authorities could be agreed shortly.

Esat BT plans to target small businesses and eventually consumers with a high-speed internet offering to compete with Eircom's recently released iStream product.

The company has signed 40 agreements with Eircom to gain access to 10 telecoms exchanges in Dublin and in other areas such as Cork, Galway, Drogheda, Tralee, Killarney and Wexford.

Esat was awarded €10 million in EU funding to help it finance the roll-out of DSL technology under a National Development Plan programme.