Telecoms regulator, Ms Etain Doyle, yesterday warned cable firm NTL that she may impose regulatory sanctions unless the firm upgrades its network to enable customers to get digital television.
In a strongly worded public statement, Ms Doyle said she was "very concerned" that customers using a type of fixed wireless technology called MMDS were still denied access to digital services.
Under the terms of NTL's cable licence, it is obliged to provide its customers with a digital television service by January 1st, 2001. But financial troubles at NTL's parent, which filed for bankruptcy in the US this year, have caused it to cut back on capital expenditure.
About 20,000 customers in parts of Dublin, Galway, Waterford and west Mayo are affected by NTL's failure to upgrade its network and can only receive an inferior analogue service. The company is also not repairing certain breaches to its wireless network, Ms Doyle's statement said.
"The situation is now intolerable and I am calling on NTL to specifically state publicly by October 15th by what means and when these viewers will have a full digital service," said Ms Doyle. "Failure by NTL to provide the necessary clarity by this date will result in my office taking whatever steps are appropriate under the regulations."
According to legislation provided for in the Wireless Telegraphy Regulations, the regulator can revoke or suspend a licence if the licensee fails to take steps to remedy a failure.
NTL would make no comment on the situation yesterday but it is understood the firm has tried to sell its wireless operations to a third party. No bidder has yet offered to pay enough cash to persuade NTL to part with its wireless operations.
"The ODTR has been in intensive ongoing discussion with NTL for almost two years about its failure to comply with the terms of the licences," said the statement. "It is now almost two years since NTL missed its deadline. NTL viewers are still deprived of access to digital television via wireless and no commercial negotiations have been concluded regarding the sale of the wireless service."
It is understood Ms Doyle held a crunch meeting with Mr Stephen Carter, NTL UK and Ireland's managing director two weeks ago to discuss this issue. But no solution to the row has been agreed.
NTL halted a digital upgrade for its entire cable network in December 2000 just a few months after the company promised to introduce broadband internet, telephony and digital television.