Cable and telecom firm Chorus has broken the terms of its cable licence by failing to rollout digital television services in several franchise areas on time.
This has prompted telecoms regulator Ms Etain Doyle to threaten to remove the firm's exclusive rights to broadcast in some areas.
The Irish Times has learned Chorus has failed to offer a digital service to homes in Naas, Maynooth, Swords and Malahide by a licence deadline of March 31st, 2001.
It is understood Chorus may decide to offer digital television over its existing coaxial cable in some areas instead of upgrading its cable to full broadband capacity.
This was the method NTL chose recently to deliver a digital television service as a means to cut down on the huge costs involved in rolling out fibre networks.
Documents obtained under the Freedom of Information Act show the regulator has proposed reducing the period of exclusivity in certain areas where the firm has failed to meet its targets.
One document states: "The Director considers it appropriate to reduce the period of exclusivity in each case by one year - i.e. from 19th April 2004 to 19th April 2003."
The letter, which was sent to Chorus by the regulator's office on October 24th, 2000, shows the firm was more than six months late in providing information on its digital programme to the regulator.
Following receipt of this letter, Chorus made the necessary returns to the regulator's office in November and February. And the regulator has not yet imposed the threatened one-year penalty.
However, a spokeswoman for the regulator said discussions involving compliance with licence conditions and rollout obligations were continuing.
Mr Willie Fagan, head of regulatory affairs at Chorus, said last night the four areas that were behind schedule would all have digital television before the end of September.
Malahide and Swords will get digital TV via an upgraded broadband cable by September while the situation with Naas and Maynooth has not been decided, according to Mr Fagan.
"We are considering either providing digital television via MMDS [a fixed wireless service] technology or over existing coaxial cable," he said. "We will make the decision over the next month or so."
Mr Fagan claimed the overall number of homes that Chorus was able to supply with digital television was ahead of schedule. Chorus was also the only Irish-based provider offering digital television, he added.
Meanwhile, Ms Doyle, has also expressed concern about the high level of complaints made against cable operators, and particularly Chorus.
Figures show 605 complaints were received in January, February and March 2001, compared with 327 for all of 2000. Of the complaints, 296 related to the planned introduction by Chorus of an additional charge for maintenance service. In addition, 86 per cent of the remaining 309 complaints were directed against Chorus.
Individual cable operators will introduce a code of practice by July 1st that they must follow.
