Eircom said yesterday it would offer consumers in Dublin an "always on" high-speed internet access service using asymmetric digital subscriber line technology from October 2nd.
This is the first deployment of this type of broadband technology in the Republic, and a successful launch by Eircom would mark a major step forward for the State's aim to become a technology hub.
Eircom's digital subscriber line service, called "i-stream", will enable consumers to connect to the internet at speeds up to 30 times faster than standard phone connections.
It will offer consumers an "always on" connection which means they will no longer have to dial up internet service providers every time they want to gain access to the internet. Initially some 277,000 consumers in Dublin will have access to the service. This will increase to more than 600,000 consumers in Limerick, Galway, Cork, the south-east, midlands and north-west by December 2002.
Eircom will invest €125 million (£98 million) over a five-year period and may extend its service to other areas in the period 2003-2006.Charges for the high-speed internet services will start at €99 per month, rising to almost €180 for a very high-speed service which can be used by several people.
There is also an €125 charge to connect to the service. Users will also have to pay between €145 to €270 for a special high-speed modem to connect to their computers. These fees are considerably higher than charges for similar services in other countries. British Telecom is currently charging its customers just £40 sterling (€64) for its basic "always on" ADSL internet.
Mr Cathal Magee, managing director of Eircom Ireland, said the service was aimed principally at small and medium-sized businesses rather than consumers.
He said it was difficult to compare the prices charged in different markets due to different cost structures. "This is a very small market and the economies of scale are quite different with fixed costs higher," he said.
Eircom may introduce a more broader-based consumer product next year which could include applications such as video-on-demand, according to Mr Magee. However, industry sources believe either the telecoms regulator or Eircom's rival Esat could yet move to block the company's launch.
A spokeswoman for the telecoms regulator confirmed last night the office had not sanctioned a €75 fee which Eircom wants to charge other operators for providing a similar service. "We will make a comprehensive statement later," she said.
Executives at Esat are concerned that it would not be able to provide its own digital subscriber line service at a price attractive to users if it has to pay Eircom the current €75 wholesale charge.
Digital subscriber line services work by splitting a telephone line which enters a home or business into two channels, one for voice and one for high-speed data transfer. This enables a user of this type of technology to make voice calls while they are simultaneously using the internet.
Eircom's i-stream service should be an attractive option for small and medium-sized businesses. Until now these businesses have not been able to get "always on" internet access without paying for expensive high-capacity leased lines. However, some users will not be able to use the new i-stream service if their business or home is more than three miles from a local telecoms exchange. Eircom will offer consumers a free test.
Meanwhile, NTL unveiled a new telecoms product aimed at the small and medium-sized market yesterday which it claimed could save users up to 25 per cent on their telephone bills.
