NTL customers in Galway, Waterford and some areas of Dublin will be able to receive a limited digital television service by September. Subscribers should receive more television channels, better pictures and better sound.
However, the service will not provide a full range of interactive services.
Innovative services such as home banking and shopping through digital television, which were orginally envisaged by NTL, will not be available under the firm's present strategy.
As reported yesterday in The Irish Times, NTL has decided to upgrade only problematic areas of its existing network rather than lay a comprehensive fibre network.
This will prevent the firm offering a telephony and high-speed Internet services over its own network.
Instead, it will offer only a dialup Internet service and telephony by piggybacking on Eircom's network.
The scaled-back NTL strategy is the latest disappointment for Irish consumers eager to obtain highspeed Internet and multimedia services.
Eircom and Esat recently delayed the introduction of a similar technology - digital subscriber line.
Telecoms regulator Ms Etain Doyle said yesterday, however, that NTL's new plan would meet the regulatory requirements set out in its cable licence.
Under the terms of its cable licence, NTL faced the possibility of losing its licence to operate in the Republic if it failed to roll out digital television to its customers.
Analysts said last night NTL would save millions by slowing its fibre upgrade but stressed it would undermine the company's attempts to enter the telecoms market and cross sell its products.
Mr Ultan Ryan, a telecoms expert with Mason Communications, warned there would be "network blackspots" in certain areas where quality could be a major problem.
The service would not be comparable to its original plan, he added.
The areas of Dublin which will receive digital television by September are: Leixlip, Ballyfermot, Clondalkin, Lucan, Baldoyle, Finglas, Castleknock, Clonsilla, Navan Road, Tallaght, St Helens, Santry, the city centre and Coolock.
An NTL spokesman said the firm would continue its original broadband upgrade from next year, subject to demand.
There was still no "definitive date" for this, he added.
The company will form a team to tackle network quality issues and the upgrade of problem areas within each network will be prioritised.
