The Attractiveness of Telecommunication Industry in 1998 Ireland
The Attractiveness of Telecommunications Industry in 1998 Ireland
The Irish telecommunications industry has been heavily regulated since the 1980s. A state-owned body, Bord Telecom Eireann, being simultaneously the largest employer in the country and the provider of the poorest quality Telecom Systems in Europe, introduced the controls that fundamentally eliminated the competition and created a monopoly. This seemingly new, but propitious industry faced numerous obstacles, as its capital requirements related to infrastructure were excessive. The investors were not willing to risk their resources for the supply of telephone lines, routers or essential networks. This combination of high prices, subdued investment and poor infrastructure prevented modernisations. To rectify the problems, the Director of Telecommunications Regulation originated a solution: privatisation of Telecom Eireann, as well as opening the Irish telecom market to competition.2 Ireland’s policy of liberalising own telecommunications markets was indeed initially driven by the European Commission derogation, nevertheless country’s prompt action proved that Irish regulatory framework is comparably as effective, as one of OECD’s countries. As a result, the deregulation of the Irish telecommunications market was introduced on the 1st December 1998. 3
“I believe that the type of regulation that has been developed will allow competition to work and will help encourage market entry. It will also herald a fast transition to an era where consumers are offered the best possible telecoms services at an affordable price” (The Director of Telecommunications Regulations, 1998)1. This confident statement proved government’s eagerness to provide services that benchmark themselves with more advanced countries, as well as successfully award 29 operator’s new licenses. 3 Interestingly, the Irish Telecom Market was becoming enriched by a new growing demand for mobile phones.
In order to fully recognise the
The Irish telecommunications industry has been heavily regulated since the 1980s. A state-owned body, Bord Telecom Eireann, being simultaneously the largest employer in the country and the provider of the poorest quality Telecom Systems in Europe, introduced the controls that fundamentally eliminated the competition and created a monopoly. This seemingly new, but propitious industry faced numerous obstacles, as its capital requirements related to infrastructure were excessive. The investors were not willing to risk their resources for the supply of telephone lines, routers or essential networks. This combination of high prices, subdued investment and poor infrastructure prevented modernisations. To rectify the problems, the Director of Telecommunications Regulation originated a solution: privatisation of Telecom Eireann, as well as opening the Irish telecom market to competition.2 Ireland’s policy of liberalising own telecommunications markets was indeed initially driven by the European Commission derogation, nevertheless country’s prompt action proved that Irish regulatory framework is comparably as effective, as one of OECD’s countries. As a result, the deregulation of the Irish telecommunications market was introduced on the 1st December 1998. 3
“I believe that the type of regulation that has been developed will allow competition to work and will help encourage market entry. It will also herald a fast transition to an era where consumers are offered the best possible telecoms services at an affordable price” (The Director of Telecommunications Regulations, 1998)1. This confident statement proved government’s eagerness to provide services that benchmark themselves with more advanced countries, as well as successfully award 29 operator’s new licenses. 3 Interestingly, the Irish Telecom Market was becoming enriched by a new growing demand for mobile phones.
In order to fully recognise the