INTERNET
IBEC praises telecoms market
31-05-2004
by Craig Liddell
Industry representative body IBEC believes that the telecoms sector is now back on firm footing, but local councils could do more to encourage innovation.
The Irish Business and Employers Confederation (IBEC), which represents over 7,000 member businesses and organisations from all sectors and sizes, said on Monday that the Irish telecoms sector has now moved into a new phase which is based on firm foundations.
Internationally, there have been strong results for telecoms companies, according to the Confederation's telecoms division, the Telecoms and Internet Federation (TIF), as well as initial public offerings, coupled with companies emerging from bankruptcy. All of these are all healthy indicators for the sector, the organisation said.
However, director of the TIF, Tommy McCabe, believes that a more supportive environment for the industry could be found from local authorities. "Some have embraced the opportunities afforded for development in their areas by facilitating investment and the necessary civil works," he said. "Others have taken the short term view of telecommunications investment as a source of near term revenue, with charges imposed on industry under numerous headings thus hindering roll out of broadband and other advanced services."
A key challenge, according to the TIF, is residential broadband coverage. But this is now being actively targeted as a commercial opportunity by operators using a number of platforms. Broadband penetration levels are also increasing significantly.
On the government front, the TIF praised the introduction of the new regulatory framework, which "has brought many welcomed changes."
The Department of Communications, Marine and Natural Resources has announced several initiatives in the past six months aimed at sparking competition in the telecoms sector.
In May, the Minister for Communications, Dermot Ahern, announced a EUR25 million scheme to provide high-speed Internet access into smaller communities throughout the country over the next three years.
Minister Ahern also announced a wide range of initiatives in March that, if all goes according to plan, will force dominant fixed-line, mobile and broadband providers to install mechanisms to allow for more competition in the telecoms market.
In the same week as the TIF statement, Minister Ahern welcomed the "broadband price war" which has enabled Irish customers to have "probably the best start-up options anywhere in the Western world". He noted that there are now more than 44,000 broadband customers, plus over 60,000 flat-rate Internet customers.
Meanwhile, TIF chairman, George Young, noted the contribution of the telecoms sector to the local economy. Operators in Ireland employ 15,000 people directly and a further large number indirectly as contractors or as providers of services. "Ireland is a centre of excellence for telecommunications industry research and development," he said.
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