Telcos approach Irish Rail over network development

A number of telecom companies have approached rail operator Iarnród Éireann seeking to use its communications lines to develop their own networks.

It is understood that at least one of them indicated that it would be willing to pay over €1 million for access to the the State rail company's fibre optic network, which would be capable of carrying broadband signals.

The companies that have approached the rail operator are all developing businesses that are seeking to build up broadband and fixed-line networks in competition with the dominant player, Eircom.

According to industry sources, they include Envy and Smart Telecom, but several others have also held talks with the State company.

Iarnród Éireann has a communications network along all its rail lines which is used to carry signals for trains, closed circuit television and other internal communications.

One of the players was said to have been willing to offer a seven-figure sum for access. However, as Iarnród Éireann is a State company, it would ultimately have to offer any access to it by a public tender.

A spokesman for Iarnród Éireann confirmed that it had received a number of approaches from telecoms companies seeking to use its network.

"We will consider any proposal, but at this point we do need to assess what our existing needs are and what they will be in the future, particularly in light of Transport 21 (the Government's transport plan) which allows for expansion of rail services," he said.

Asked if the company was going to tender publicly for access to the communications network, he said it was "a possibility".

The communications network includes the controversial signalling system that ended up costing the company €45 million more than the €18 million it had originally earmarked.

The signalling system was developed during the nineties, and led to an Oireachtas enquiry that focused on the relationship between Iarnród Éireann's parent and Esat, the telecoms business set up by entrepreneur Denis O'Brien.

Esat built its own fibre optic network along the rail network when it was developing its business in the mid nineties.

This is now used by BT Ireland, which bought Esat five years ago, after that part of its telephone network had been built.