State slashing internet connection fees

The cost of internet access for consumers is set to fall dramatically in the New Year, following a Government decision to introduce flat rate charges.

Following an order by Communications Minister Dermot Ahern, internet service providers will have to provide set charges for unlimited internet access by home and business users.

At present, internet users are charged per minute of time during which the computer is logged on.

The move is to encourage more home use of the internet. Only three in 10 homes have internet access, compared to 98% of businesses. Last night, the Minister’s spokesman said flat rate charges should be available by January or February.

In a survey of businesses by the Irish Internet Association, the cost of internet access and slow connection speeds for residential internet users were identified as the main barriers to internet usage growth.

But Eircom is likely to oppose the flat rate as it will reduce company income.

Last night an Eircom spokesperson said the company was aware of the Minister’s order but had no immediate comment to make.

Flat rate access is vital in driving the ‘information society’ and is a pivotal part of the country’s economic and social development, Minister Ahern said.

The move to flat rate access has been recommended by Forfás, the National Competitiveness Council, the advisory committee on information companies and other interested parties, the Minister said. “Ireland needs flat-rate internet access, sooner rather than later,” he said.

The Commission for Communications Regulation will be responsible for introducing the flat rate as an absolute priority. The order is being made under new powers available to the Government under a law introduced earlier this year.

The telecommunications sector is a major driver of economic prosperity, the Minister said.

“We have to lead in this area. It is not enough to trail behind Europe, the US and the Far East in terms of policy and infrastructure. We need a stable, modern and competitive communications market. We need to be the best - the most competitive - in the world,” he said.

The roll-out of broadband telecommunications throughout the country is also continuing, with the Metropolitan Area Networks targeting 20 key towns. Broadband enables the flow of data, voice and

image communications simultaneously, at very high speeds.

Telecommunications cost effectiveness, price competiveness and services have to improve, Minister Ahern said.

“This will allow us to encourage private investment and keep the Irish telecommunications sector strong,” he said.