Today, the telecommunications market in this State enters a new era with the abolition of Telecom Eireann's voice telephony monopoly and full liberalisation of the market. Under the terms of a derogation secured in Brussels by the Government, the monopoly could have continued for another year, but the Minister for Public Enterprise, Mrs O'Rourke, decided last summer to press ahead with deregulation. This was a sensible and well-judged decision. Increasingly, Telecom's monopoly on voice telephony was an anachronism in a State which aims to project itself as the European centre for advanced telecommunication services. The end of the derogation means that local companies like Esat and world players like Ocean (a joint venture between BT and the ESB), Cable & Wireless and Worldcom in the telecommunications industry can now compete with Telecom across all sectors of a business worth at least £1.5 billion. The result should be good news for the consumer; more intense competition should mean much cheaper calls. In a series of pre-emptive strikes, Telecom Eireann has aggressively cut the cost of calls, reducing prices by £340 million, in recent years; the cost of long-distance calls has declined appreciably. But local charges, especially during the day, remain high, a factor which can damage competitiveness and inhibit Internet usage. The hope must be that competition will drive down all charges in much the same way that the ending of the effective Aer Lingus monopoly drove down air fares between Britain and Ireland. The telecommunications regulator, Ms Etain Doyle, appears in no doubt about the benefits that will accrue; liberalisation, she said yesterday, was "great news" for consumers.
In truth, it will take some time before the impact of deregulation can be assessed. A high-profile battle has already commenced between Telecom Eireann and Esat Telecom for the residential market - where Ocean will also compete - but a still keener battle will also be fought in the corporate market, with some companies offering general services and others targeting niche markets. If the British experience is any guide, there will be routine complaints about the regulation of the industry and allegations that some companies are intent on "cherry-picking" in certain markets. Several years on, there may be a suspicion among consumers that monopoly in some markets has been replaced by duopoly, in which two major players carve up the market. All of this is in the future. For now, the prospects appear bright. Telecom Eireann, after a period of restructuring, appears well-placed to compete in the marketplace. The consumer can look forward to the benefits of choice and competition. And, critically, this State has, at last, the kind of open telecommunications market that will allow it to benefit fully from the revolution in the industry.