Figures released today by the Chambers of Commerce of Ireland (CCI) show that 81 per cent of small-to-medium sized enterprises (SME’s) cannot afford broadband and are happy with dial-up access to the Internet.
Speaking today in response to IBECs recommendation that telecommunication providers should be allowed raise the cose of services to business, Mr John Dunne, CCI’s chief executive said Ireland is already too expensive.
"The focus of Internet access in Ireland and talk of broadband offerings needs to change rapidly," Mr Dunne said, "as there is a strong demand for an always on flat-rate access, for which the infrastructure is already in place, but this requires the effective unbundling of the local loop."
"Our research shows that the demand for broadband does not yet exist and rather than looking at increasing the cost of supply we should look at what will stimulate demand. Only when significant demand has been generated will the market be attractive for telecommunication investors."
Ireland, he said, is already one of the most expensive places to rent leased lines among OECD countries and any move to increase prices would only further penalise business using such services, particularly outside the Dublin area.
"The use of information and communication technology is about cutting costs in business but Ireland's telecommunication infrastructure makes that very difficult for all but the largest businesses," he said.
"IBEC's proposal does not address the real issue which is that Ireland's regulatory environment does not yet allow for competition in areas that are of most relevance to the needs of businesses.
"We want more competition in this sector but that can only happen when there is effective access for alternative telecos to the local loop and when we have a regulator that has reasonable powers of enforcement."
Mr Dunne also called on the government to fast-track the Communications Bill which has been stalled and for increased powers of enforcement for the telecommunications regulator.
"The inexplicable delays in the introduction of the Communications Bill, the fact that the local loop in Ireland is still effectively monopolised by one operator and the long delays in re establishing the Information Society Commission make a mockery of Ireland's pretension to be an e-commerce hub," he said.