The Minister for Communications , Marine and Natural Resources, Mr Dermot Ahern this afternoon welcomed eircom's announcement that it was slashing the retail price of its broadband digital subscriber line (DSL) technology.
Speaking in Dublin today Mr Ahern expressed his hope that the announcement would have "a significant bearing" on the delivery of high-speed Net access to a mass market.
Eircom charges €89 a month for access to its broadband service which is almost 20 times faster than Internet access through an ordinary phone line.
This charge is to be halved to around €45 per beginning in March, the company said this morning.
Promoting wider use of the Internet in the State has become increasingly difficult in the absence of DSL technology and the uptake of DSL services has been delayed by regulatory problems and the relatively high cost in the Republic until now.
Less than 3,500 DSL lines have been sold to businesses and residents since the service was introduced last year, placing the Republic at the bottom of the EU in terms of DSL lines.
"The halving of DSL prices is very welcome. This new package places Ireland in an increasingly competitive position with our European partners in relation to Internet access costs," Mr Ahern said.
Competitors however described the move as anti-competitive as it had not been offered a wholesale rate first, as it must under the terms of eircom's licence.
But eircom says it has notified the regulator ComReg and is working on a new wholesale price.
