Cable firms Chorus and NTL asked the Government yesterday to consider subsidising a national digital television service using their existing wireless networks.
The proposed service would provide households in rural areas with digital television using MMDS, a fixed wireless microwave technology already in use in many parts of the Republic.
The firms believe subsidising the roll-out of MMDS rather than investing in a technology called digital terrestrial television is the best way to create a national digital television network.
NTL and Chorus suggest the new service would provide an Irish alternative to the Sky satellite platform and the BBC's new free satellite service, which is due to operate from July 10th.
The cable firms made a submission to the Government yesterday when they met the Minister for Communications, Mr Ahern, as part of an IBEC delegation discussing the threat posed by the BBC's decision to offer its television and radio channels free to Irish users via satellite.
This service, provided via the Astra satellite, will enable people with a satellite dish and set top box to get up to 90 channels for free, without paying any subscription to a platform provider.
IBEC's telecoms and internet federation (TIF) told Mr Ahern that "freesat" would cause Ireland to lose its broadcasting sovereignty and could lead to Irish job losses.
Mr Tommy McCabe, director of the federation, said the BBC's "FreeSat" service would seriously undermine the cable and MMDS industry sectors and affect the broader context of future telecoms in Ireland.
The federation, which also represents RTÉ, TV3 and TG4, also warned "freesat" may seriously undermine scope for a digital terrestrial television network, a plan currently under review by the Government.
IBEC believes a national digital terrestrial television service could be established by a public private partnership.
However, the Government halted a tender process to choose an operator for digital terrestrial television last year because no firm could raise the €50 million required to launch the service.
Mr Willie Fagan, director of regulatory affairs at Chorus, told The Irish Times yesterday the ability of a digital terrestrial television service to compete was questionable.
He said the Government should consider using existing MMDS technology to offer a national service. This could be done in conjunction with any new digital terrestrial television service set up by the State.
NTL, which provides digital television services to almost 20,000 users via MMDS technology, also favours promoting a national MMDS service as a means to combat the threat of "freesat".
It is understood both firms want the Government to subsidise the roll-out of digital set top boxes across the State.
They also want ComReg to change the terms of their MMDS licences to enable them to offer the service.
NTL and Chorus provide television services to about 550,000 homes, although only a fraction of these have been upgraded to offer digital television.
Digital television offers consumers more channels and better quality picture and sound. The establishment of a national digital television service would enable the Government to turn off the analogue television signal and use this spectrum for different uses.
