Telecoms regulator Ms Etain Doyle may open up cable firms' networks to competition next year by enabling other firms to offer services over the copper cables that enter more than 500,000 homes in the Republic. But the poor condition of NTL's existing cable TV network in Dublin, Waterford and Galway could prevent other companies from accessing the biggest cable network in the Republic.
In an interview on the Pat Kenny radio show yesterday, Ms Doyle said that under a new EU regulatory regime next year the "unbundling" of cable networks was a possibility. But she said her office would have to conduct a study first to determine whether cable networks should be opened up to competition here.
Earlier this year Ms Doyle removed Chorus and NTL's exclusive right to broadcast in their franchise areas in a bid to promote greater competition in the market.
The severe downturn in the tech sector has prevented competitors from taking advantage of this change in regulation to provide additional competition to the cable companies. By opening up NTL and Chorus's network to competiton, Ms Doyle would promote more competition in the sector.
But a decision to unbundle cable firms' networks would be opposed by incumbents NTL and Chorus, which already face major financial challenges and would lose revenue from this type of intervention by the regulator. It may also dissuade both cable firms from upgrading networks.
An NTL spokeswoman said yesterday it would be unwise to speculate on possible regulatory obligations or remedies until the market analyses are completed.
Both NTL and Chorus supply services to more than 600,000 homes, with about 500,000 households receiving their service via a cable directly entering the home.
Under a package of new European regulations, telecoms watchdogs will be encouraged to treat all types of communications networks equally. If NTL or Chorus is shown to have significant market power in their franchise areas, they may be forced to open up their networks to competitors.
But The Irish Times has learned that the poor condition of NTL's cable network may make it unusable by other companies. A decision notice issued by the telecoms regulator last year acknowledged this: "The question of open access to the NTL network for other operators does not arise because the network is not capable of supporting it."
Ms Doyle also acknowledged yesterday that NTL's network in the Republic - which serves Dublin, Waterford and Galway - had been poorly maintained by RTÉ and Eircom before its sale to NTL in 1999.
Initially NTL said it would upgrade but the firm ran out of cash last year halting its digital upgrade in the Republic. It later filed for chapter 11 bankruptcy protection in the US.
