Eircom’s decision to allow its rival Esat the chance to offer high-speed internet access via the Eircom network has been welcomed by the Irish Internet users group, IrelandOffline.
The decision means Esat can now place equipment at Eircom-owned exchanges, thereby beginning the process of local loop unbundling (allowing competitors access to an exchange directly linked to a customers phone line).
Esat are expected to offer digital internet and telecom services early next year after agreement was reached to allow the company place digital subscriber line (DSL) technology in an Eircom exchange in Limerick.
"Our membership is very enthusiastic about the announcement," said Mr Adam Beecher, acting PRO of IrelandOffline, who described the agreement as "a landmark step".
However, the group expressed concern over the delay in reaching an agreement on wholesale bitstream pricing for eircom's i-Stream DSL product.
They say bitstream agreements, which require eircom to offer wholesale versions of their retail product for resale by competitors, is crucial to bringing competition to the marketplace.
When Esat install their equipment at the Limerick exchange they will be able to offer asymmetric digital subscriber lines (ADSLs) to home users and Symmetric digital subscriber line (SDSLs) to medium-size businesses.
SDSL allows businesses to keep their lines permanently open by paying for a lease on their lines rather than the per-second or per-minute billing that applies to households using ADSL.