Esat deals now sanctioned by the EU

The European Commission has sanctioned agreements reached between Esat Telecom and both CIE and Iarnrod Eireann which the former would lay optical fibre cables along the national rail network.

Esat Telecom intends to create a national optical fibre network whose construction and maintenance it has subcontracted to Iarnrod Eireann.

But the Commission's Competition directorate made clear that in its dealings with the two companies it received assurances that the access to the rail network would not be exclusive and that other third party operators could be also be allowed to use it. Agreements between the two have been amended accordingly.

These now provide for priority access to the rail system for Esat Telecom for a short period and require Iarnrod Eireann to give it notice of its intention to bring in other cablers. If it feels that its work will be interfered with Esat it may seek postponemnet of third party access.

The Commission is currently handling a number of similar cases and while its statement yesterday insisted that each would be dealt with separately on its own merits, "the same general principles will apply".