By Andrew Bushe
DUBLIN – The state telephone monopoly is to be scrapped before the end of this year, opening the _1.2 billion business to competition more than a year before the EU derogation, which was due to end on Jan. 1, 2000.
Public Enterprise Minister Mary O’Rourke said it is in Ireland’s interest that competition is introduced as soon as possible. The move is expected to a result in an acceleration of Telecom’s price reductions to business and residential customers.
Several companies are believed to be interested in entering the market, including WorldCom, Cable and Wireless, the ESB and British Telecom.
Esat Telecom, a company already in competition in the mobile phone area with the state’s Telecom Eireann, hopes to have the basis of a national network operational next month.
Esat did a deal with CIE to lay fibre optic cable along railway lines to give it the backbone of a national communications network. It has also been laying cables in Dublin.
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Esat’s share shot up on the NASDAQ exchange in New York as a result of the decision, bringing a multi-million-pound bonanza to boss Denis O’Brien and an array of other big shareholders.
Business groups have been lobbying for the dropping of the derogation, arguing it was stifling efforts to market Ireland worldwide as a location for advanced telecommunications investment
The government is finalizing plans to sell off its stake in Telecom in what may be the first privatization of substantial state assets.
The Cablelink company, which is jointly owned by RTE and Board Telecom, is also to be sold off.
Telecom Eireann is a full service telecommunications company supplying local, long distance and international service to Ireland-based companies and residential customers.