Business and residential telecoms customers will have a wider choice following the arrival of a company led by the former head of MMI stockbrokers, Mr Oisin Fanning.
Smart Telecom, which is quoted on the Ofex over the counter market in London, announced the service in the Republic yesterday, claiming to offer discounts of up to 30 per cent to Eircom's prices.
It is also seeking a telecoms licence from the UK regulator and, if successful, will attempt to roll-out its service on an all-Ireland basis.
Funding of £4 million (€5 million) for the project was being provided by the shipping entrepreneur, Mr Atle Jebsen, said Mr Fanning. Mr Jebsen is a 20 per cent shareholder in Smart Telecom.
Former president of ICTU and the chairman of ICC Bank Mr Philip Flynn is chairman of Smart Telecom.
Mr Fanning was the managing director of MMI Stockbrokers when it collapsed leaving investors nursing losses. The liquidation of the company is not yet complete.
