New players may help revive telecoms market

A Swiss telecom offering wireless hotspots that enable people to access theinternet on the move, is among a number of firms awarded licences in theRepublic in the past month, writes Jamie Smyth, TechnologyReporter

Several telecoms firms have been awarded licences to operate in the Republic in the past month in a move that should boost competition in the depressed sector.

The new entrants include SwissCom Eurospot, a subsidiary of the Swiss national telecoms firm, which is building out a network of European wireless hotspots.

Wireless hotspots, which are based on wireless LAN (Wi-Fi) technology, enable people to access the internet on the move.

Wi-Fi is one of the fastest growing areas in telecoms and it is understood other big European players are considering entering the Irish market. Industry sources believe France Telecom, Deutsche Telekom and Kast Telecom may set up hotspots here.

SwissCom Eurospot entered the Irish telecoms market when it acquired another pan-European wireless operator, Megabeam Networks, in March. Megabeam was subsequently awarded an Irish telecoms licence, which will will now transfer to SwissCom Eurospot.

A spokeswoman for SwissCom Eurospot said it would continue to expand into the Irish and British markets following its acquisition of Megabeam Networks. But it is still unclear which locations in the Republic the firm will target with wireless services in competition to domestic companies such as Eircom, O2 and Esat BT.

SwissCom Eurospot currently provides high-speed internet access to business travellers in key venues such as hotels, conference centres and airports. It has 400 hotspots under contract and, together with roaming partners, will offer a similar service at 800 European sites.

Two other firms - Dutch-based Aramiska and Athlone start-up Last Mile Wireless - have also been awarded licences recently to provide telecoms services in the Republic.

Aramiska provides high-speed internet services to businesses using satellite technology and has already signed up a reseller in the Irish market, Abacus Systems and Networks.

It is seeking to take advantage of the slow roll-out of digital subscriber line (DSL) technologies in the Republic by offering an internet connection without having to rely on Eircom or Esat BT's local networks.

It offers a range of broadband packages to businesses at prices from €149 per month.

This includes security services such as firewalls and ISP services, Web space, mail server and support.

Aramiska has about 50 customers in the Republic at the moment but plans to sign up 300 to 500 businesses before the end of 2003, according to a spokesman.

Last Mile Wireless plans to offer internet services to businesses using a collection of technologies including satellite, point-to-point fixed wireless and Wi-Fi systems.

It was set up by two former Ericsson executives in Athlone and was awarded a licence to offer services in late March by the Commission for Communication Regulation (ComReg).

Last Mile Wireless hosted one of the first public demonstrations of Wi-Fi hotspot technology in Athlone in October 2002.

It is currently engaged in a trial of Wi-Fi and fixed wireless technology in the Athlone area and is supplying internet to several businesses.

Several other Irish wireless firms including Irish Broadband, Irish Wisp and Leap Broadband are already offering high-speed internet services in Dublin.

Leap Broadband, which was set up by the Ardagh brothers, Rory and Charlie, currently has 200 customers connected to its network.