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More Positive Outlook for Telecoms Sector

The Telecommunications and Internet Federation stated today that the telecom sector has now moved into a new phase which is based on firm foundations. Internationally, there have been strong results for telecom companies operating in the market, as well as initial public offerings, coupled with companies emerging from bankruptcy. These are all healthy indicators for the telecoms sector. Dr George Young, Chairman of TIF, stated that telecommunications 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.

The industry is a key enabler of economic prosperity. By most metrics in terms of quality of service, pricing, mobile coverage, etc, Ireland comes over well. The big challenge was residential broadband coverage, but this is now being actively targeted as a commercial opportunity by operators using a number of platforms and broadband penetration levels are increasing significantly.

Telecommunications is the only major infrastructural area led by private sector finance. Government support for the sector is welcomed, said Dr Young - although there can be debates about the optimum degree of engagement and focus- but ongoing investment by operators dwarfs the government's commitment. Major investment programmes now being undertaken by the industry are in the fixed network for broadband deployment, in 3G mobile and fixed wireless access provision, all destined to ensure a competitive infrastructure is in place for Irish business and residential users.

In recent months TIF in collaboration with the Department of Communications, Marine and Natural Resources and the Department of Education and Science, has entered into an agreement for the provision of broadband services to schools. The introduction of the new regulatory framework has also brought many welcomed changes according to TIF.

Tommy McCabe, Director of TIF, stated that a more supportive environment for the industry could, however, be found from local authorities. Some have embraced the opportunities afforded for development in their areas by facilitating investment and the necessary civil works. 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.

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source : http://www.ibec.ie/tif

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