NTL has radically revised its plans to offer digital television, high-speed Internet and telephony over a digital fibre network following cost-cutting at its operations in the Republic.

It is understood the firm proposes to use its existing cable network to offer digital television instead of rolling out a complete fibre network in its franchise areas. This strategy, which is part of its technology review, would enable NTL to offer customers a limited digital television service. However, the technology would not be capable of providing a fully interactive service.

NTL would have to lay a complete fibre network to provide a full complement of broadband services such as "always on" high-speed Internet or telephony. Instead, the firm will continue to offer dial-up Internet and telephony over Eircom's network. Mr Ultan Ryan, a telecoms expert with Mason Communications, said last night that offering digital television over a coaxial cable system was possible but it would reduce interactivity and present quality issues.

NTL's strategy will cut costs and should enable it to meet regulatory conditions that require the firm to introduce digital television by specified dates laid down in its cable licence.

Under the terms of NTL's cable licence, the telecoms regulator can revoke its cable licence if it fails to meet its targets.

By tomorrow, NTL is supposed to have about 110,000 customers connected to digital television. Although it will miss this target, the firm believes it has a six-month cooling-off period before regulatory action can be applied.