Regulator delays decision on DSL usage by Eircom

A decision on whether Eircom will be allowed to offer licensed programme services through the deployment of digital subscriber line (DSL) technology has been delayed by telecoms regulator Ms Etain Doyle.

Under the terms of Eircom's current telecoms licence, it is not allowed to offer licensed television services over its network. If this is not changed, Eircom's proposed DSL strategy may be undermined. Although Eircom would be able to offer high-speed Internet, video on demand and alternative entertainment services, the inability to provide digital television would weaken its product set.

In a statement, the company said it was disappointed at the delay, adding that regulatory certainty was necessary to underpin investment in its broadband network.

Earlier this year, Ms Doyle initiated a consultation process on asymmetrical digital subscriber line (ADSL) technology and she was expected to announce a decision on Eircom's TV strategy shortly.

However, Ms Doyle has decided to conduct a detailed analysis on the technology in the New Year. This review will probably delay a decision for a number of months.

"There is still uncertainty about the ability of ADSL technology to deliver licensed programme services," said a spokeswoman for the regulator. "The consultation paper was never intended to be conclusive."

Eircom said: "The most significant issue is whether consumers want television services as part of an overall multimedia package, as opposed to whether telecoms companies want to offer it and whether the current restriction on Eircom is fair and equitable."

The issue of extending its licence to include the delivery of licensed television programmes is a sensitive legal issue. Cable operators NTL and Chorus claim to have been given exclusive rights to transmit TV in return for promising to invest heavily in their networks.

A decision by the regulator to allow Eircom to transmit TV programmes may prompt either operator to take legal action.

An NTL spokeswoman said yesterday the company would have to wait and see what happened when the regulator made a final decision on the issue.

Eircom is conducting its DSL technology trials with the British company Yes TV.