Telecoms deadline decision on hold

Date: 26/09/1996

IRELAND should know within a month whether it can hold out for extra time before implementing the EU's main telecoms liberalisation package.

Dublin, along with Lisbon and Athens, has asked the European Commission for a longer period of grace before opening up its main public telephone network to competition. A similar request is expected from Luxembourg soon.

The Irish government argues that the key date of January 1998 for competitors to plug into Telecom Eireann's network should be pushed back to January 2000, claiming the state-owned company needs more time to get its books in order and adjust its charges after heavy spending on improving its network.

Portugal has asked for a similar delay, citing a cash drain as clients transfer to rival firms, satellite systems and closed networks, if it is exposed to faster competition. The Lisbon government claims public service could be at risk without more time to adapt.

But competition officials are warning that Ireland, for one, will have to compromise on its claims - and this could well set the trend for the Commission's handling of other demands for longer transition periods.

This, however, prompts wry smiles from some national experts, who say the Commission will have a tough time facing down demands for a delay. “It is a moot point whether the Commission can enforce a shorter transition. It probably lost that battle when it first agreed to extra delays,” said one.