Businesses in Limerick can order a new high-speed internet service for €90 per month from Esat following the first example in the Republic of a process known as "unbundling the local loop".
This process, which enables a competing telecoms operator to locate its own equipment in Eircom's telephone exchanges, should promote more competitive internet services in the future.
Esat, the only firm which is currently seeking to access Eircom's telecoms network, said yesterday it would roll out its new service based on digital subscriber line (DSL) technology to 31 towns outside Dublin over the next year.
DSL is the name given to a new technology which provides a connection between customers and a local telecom exchange. It is considered crucial to attract inward investment to the Republic.
Esat will initially offer three DSL services to customers. Its basic product enables consumers to download data at speeds up to 512 kilobytes per second and send data at 256 kilobytes per second.
This basic service will cost consumers €90 per month rental, and a once-off connection fee of €125.64. Esat has also announced two faster products with monthly charges of €615 and €1,200.
Esat has already signed agreements with Eircom to gain access to about 18 telecoms exchanges including Cork, Galway, Drogheda, Tralee, Killarney and Wexford.
Esat was awarded €10 million in EU funding to help it finance the roll-out of DSL technology under a National Development Plan programme. The full cost of its strategy is €40 million.
The telecoms regulator, Ms Etain Doyle, and the Minister for Public Enterprise, Ms O'Rourke, both welcomed Esat's announcement yesterday as a critical step forward for broadband Ireland.
Although "unbundling the local loop" was mandated by the EU on January 1st, 2001, competitors have consistently complained that Eircom has stalled the process. KPN Qwest, NTL, Worldcom, Formus, Cable & Wireless, Genesis and Aurora withdrew from the process last year due to a combination of these regulatory issues and deepening financial problems.
