The rampant growth of the Irish telecoms sector may be ending, according to the latest report published by telecoms regulator Ms Etain Doyle.
The latest report from the Office of the Director of Telecommunications Regulation (ODTR), which covers the second quarter of the year from April to June, showed telecoms generated revenues of euro 3.12 billion, a decrease of about 1 per cent on the previous quarter. Numbers employed in the sector fell by 2.5 per cent to 17,300, reflecting recent job cuts. The telecom sector accounted for 3 per cent of GNP, the same as in the previous quarter. Commenting on the report, Ms Doyle said: "Today's figures are clearly indicative of a sector experiencing a levelling off in the strong growth rates it enjoyed over the last twelve months." She said although revenues in the sector increased by up to 30 per cent in the past 12 months, the quarterly review shows a slight fall for the first time in many years. Ms Doyle said although market share of new entrants continued to increase, the rate of growth of market share for new entrants has slowed over the last two quarters "New entrants have captured and retained to date one-fifth of the fixed-line market since liberalisation. This compares well internationally".
The figures show mobile penetration now stands at 70 per cent up 22 per cent from this time last year. In the mobile market, the growth in the text-based SMS market has levelled off since the last review in June.
But the trend towards the use of data communications continues - as shown by a growth of 14 per cent in ISDN lines in the quarter, the report said.
Digitalisation of television services is advancing also and by the end of September digital television services will be available to over a quarter of the households in Ireland.