Broadband fails to lure newcomers

The take-up of high-speed internet services is still disappointingly slow in the Republic, with 3,300 people ordering digital…

The take-up of high-speed internet services is still disappointingly slow in the Republic, with 3,300 people ordering digital subscriber lines (DSL) in the six months to December 31st, 2002.

A report by the Commission for Communication Regulation (ComReg) also shows that 10 per cent of fixed wireless internet users stopped using the technology in the last quarter of 2002.

Fixed wireless technology is used to beam high-speed internet services to businesses or homes without running standard telephone wires into buildings.

Initially viewed by firms as a technology with huge commercial possibilities, the downturn in the tech markets has led to a steady decline in interest. The report shows residential and business subscribers using this technology fell to 5,000 from 5,500 in the last quarter.

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The report shows the roll-out of digital subscriber line technology is still slow. Just 3,300 orders were taken in the six months to end 2002, with 80 per cent placed with Eircom.

Digital subscriber line is a technology which upgrades telephone lines to deliver internet at far higher speeds than currently possible with a dial-up modem. It is considered an important technology to encourage internet use by consumers and businesses.

The poor take-up figures contributed to the State's recent slump to 51st place on the World Economic Forum's global index of broadband availability. This report found the Republic trailed many developing countries, scoring lower than Tunisia, El Salvador, Namibia, Peru, Nicaragua, Botswana, Dominican Republic, Mexico, Guatemala, Brazil, and Romania.

Most analysts attribute the State's poor results in a succession of surveys on broadband take-up to the high cost of digital subscriber lines in the Republic and Eircom's lengthy delay in launching the product.

Eircom and Esat launched digital subscriber line in May 2002 following delays in the roll-out of the technology due to regulatory squabbles over allowing competitors to access Eircom's local network. The high cost of broadband at launch, more than €100 a month, also delayed take-up.