Existing phone companies will have to share their infrastructure with new entrants to the market, under regulations signed into law by the Minister for Public Enterprise Mrs O'Rourke. The regulations, which give effect to a European directive, will oblige operators to share masts and other infrastructure wherever possible and lay down strict rules for pricing of interconnection rates. This is the rate which Telecom charges competitors to deliver part of their call.

The regulations pave the way for competition in the domestic telephony market, when Ireland's derogation ceases in 2000. It effects new entrants to the market from January 1st, 2000.

The regulations will also ensure that Telecom will be able to recoup some of the costs of providing a universal service nationwide from competing operators. "This would have the effect of inhibiting new operators from "cherry-picking" the most lucrative sections of the market without having to pay for the overall national service," according to a statement from the Minister.

She said effective competition can only be introduced by allowing new entrants to link-up or interconnect with the existing national operator,"?????????

She said this required a legal framework to enable agreement between parties on technical and commercial issues. "This is a key issue for market entrants since interconnection charges can account for about 40 per cent of the total costs of new operators."

Interconnection is a controversial issue among Telecom's competitors. The EU commission is currently adjudicating on a complaint filed by Esat Telecom regarding the rates it is being charged by Telecom to connect calls.