BT Ireland plans to invest €500 million across the State over the next five years in developing a network offering a full range of telecoms services.
The announcement came as it revealed yesterday that revenues in the six months to the end of September grew 17 per cent on the same period last year to €257 million from €220 million.
Earnings before interest, tax and write-offs grew 17 per cent to €14 million. The company said it had performed well in the IT services sector, winning contracts with the likes of Bank of Scotland (Ireland) and Web Reservations International. It also successfully commissioned the Government's digital TV pilot service. Broadband connections rose 37 per cent to 48,000.
The company said yesterday it intended investing €500 million in a communications network that would deliver "fixed, mobile, voice, data, video on-demand and broadband services" for consumers and businesses. The development will make it possible for customers to get services such as broadband television and cheap phone calls over the internet.
The plan is part of the British-based multinational's proposal to roll out its "21st-century network" across its territories, at an estimated cost of €13 billion.
Last year, it said it intended extending this to Ireland - where it is an all-island business - but warned that it was based on the assumption that the existing Eircom-controlled network in the Republic would be opened up.
BT Ireland chief executive Danny McLaughlin reiterated this yesterday. "This is based on us getting a reasonable return for our investment," he said, adding that it depended on Eircom's network being opened up so its competitors could directly link their customers to telephone exchanges.
Eircom has been resisting the process, which allows competitors to offer their own services to customers rather than acting as retailers for the dominant player.
Mr McLaughlin and chief operations officer Mike Maloney acknowledged yesterday that Eircom was in talks with its competitors, under the auspices of regulator ComReg, aimed at finding a solution to the problem.
A key issue is that many broadband customers seeking to switch from one company to another face long delays or may have to change their phone numbers.
This was cited by Smart Telecom last month as one of the problems that almost forced its collapse in the autumn. Mr Maloney said that if the situation persisted, it would cause market failures. "That would be very bad for the whole industry," he said.
