Regulator warns Telecom's rivals Esat and TCL

The new regulator for the telecommunications industry has warned Esat and TCL, rivals of Telecom, that they must stop using devices which divert certain calls from Telecom's local network to their own. The devices, known as routers or autodiallers, are used by companies such as Esat and TCL to divert longdistance and international phone calls from Telecom's network to their own. The devices obviate the need for leased lines which must be rented from Telecom. The routers can also work out cheaper for Telecom's rivals who provide international and long-distance telecommunication services for the corporate sector.

The regulator, Ms Etain Doyle, has warned that if the providers operate outside the terms of a notice issued last week, they risk having their licences withdrawn or suspended and even the possibility of criminal prosecution.

Ms Doyle said she was aware of the possible use of routers or autodiallers to provide voice services and was concerned to ensure that this did not occur as it was not in accordance with the terms of the EC derogation on voice telephony. However, the routers will be replaced by a new structure, known as SwitchLinks. They will be available at a cost of £20 per month with additional charges levied for the use of the lines. One industry source said last night that it seemed that the regulator was now replacing one form of router with another.

The regulator, who has met the various telecommunications providers over the past couple of months, said she recognised the need for transitional arrangements and had made several proposals in this regard. From yesterday, service providers were barred from entering into any new contracts for the provision of voice services to the public using router or autodialler technology.

In addition, any outstanding contracts for such services must be finalised within the next two weeks. By the end of this month, service providers must have ceased all marketing of real time voice services based on router or autodialler technology. They must also revert to using SwitchLinks for any new business from existing customers who until now had used routers.

One of the arguments put forward by those using routers is that they faced huge delays, sometimes up to 12 weeks in getting leased lines from Telecom. They also felt the lines were too expensive compared to the price paid by their counterparts in Britain for example.

As part of the new conditions laid down by the regulator, the charges are more flexible and delivery times must be guaranteed by Telecom. However, industry sources said last night that Telecom will now have a far better fix on the volume of business its rivals are doing and who their customers are.

They suggested that such information, if it was to be used commercially, could be very valuable to Telecom.

The row on autodiallers goes back some time. Last year the then Department of Transport, Energy and Communications wrote to Telecom and told it to cease providing services to rival phone companies who used routers. Esat Telecom, which has maintained all along that the routers are legal, said last night that it was considering the situation and would comment on it in due course. A spokesman for TCL could not be contacted.