I visited Dingle in Co Kerry for the first time this week and was not disappointed. It is the perfect place to relax and get away from it all. It even lives up to the hype generated by Bord Fáilte advertisements, which markets Kerry as a kind of 1950s theme park for Irish traditions.

So I wasn't too disappointed when my mobile failed to pick up a signal in several parts of the Dingle peninsula - it rather added to the charm of the place.

However, IBEC's Telecommunications User Group (TUG) and businesses are getting rather irate about the lack of telecoms and basic infrastructure in the regions.

A recent TUG study found that 54 per cent of firms outside Dublin are unhappy with their telecoms service providers. Poor quality of telephone lines, delays in installation and high costs are among the biggest complaints. A massive 82 per cent of companies say they experience coverage problems for mobile services outside urban areas. Perhaps the most damning aspect of the study was that the situation has deteriorated since the group's last study, conducted in 2001.

It is hardly surprising then that west and mid-west regions suffered greater multinational job losses - 9.6 and 13.6 per cent respectively - last year compared with the Dublin region, where employment rose by 0.4 per cent during 2002.

Why would a chief executive locate a firm in an area where receiving mobile phone calls can be a challenge, never mind getting a DSL connection?

So who is to blame for this communications conundrum?

Capital expenditure on telecoms infrastructure over the past two years has slumped, reflecting the severe downturn in the general market. Fixed operators such as Eircom, Esat BT, WorldCom and Colt are focusing on squeezing cash from their existing assets rather than rolling out new networks.

To be fair, the Government is stepping into this funding gap by spending €65 million over two years to build fibre rings around 19 Irish towns. But most observers believe the Republic's low density population will require mobile solutions to overcome the widening infrastructure gap between the regions and Dublin.

Mobile phone firms, which say they are investing millions on upgrading their networks, have to shoulder some of the the blame for coverage blackspots. O2 Ireland recently disclosed that it generated pre-tax profits worth €107 million in the year to the end of March 2003. So surely it can provide a better service?

Certainly. But even extra cash may not help due to the growth of the NIMBY (not in my back yard) lobby in Ireland.

The NIMBY lobby is intensifying its efforts to undermine the State's mobile networks. Protesters have gone to extreme levels in recent years, including taking the law into their own hands by cutting down masts. But a sophisticated lobbying process is beginning to show signs of success, as a raft of anti-mast regulations are introduced by county councils.

Kerry was one of the first counties to declare war on the mobile. At a Kerry County Council meeting on November 18th, 2002, Cllr Billy Leen and Cllr Jackie Healy Rae successfully proposed and seconded an amendment to Kerry County Council's draft development plan, which prevents the set-up of a new mobile phone mast within one kilometre of any rural dwelling in Kerry. The two councillors proposed the amendment despite warnings that it would be "to the detriment to the provision of service in the county". Cllr Leen based his support for the amendment on the "ample medical evidence available which suggests that there are health risks from telecommunication masts". He also said property was immediately devalued when a telecoms mast is erected nearby.

The latter point may be true in a State where "anti-mast" placards are more common than telephone boxes. But many experts would dispute the assertion that medical evidence has proved the health risks of telecoms masts.

Masts pose less of a health issue than mobile handsets as they emit less radiation and are further from a user's brain, according to a British study on mobiles, The Stewart Report.

In fact, one consequence of the exclusion zone in Kerry is that mobile users may be exposed to higher levels of radiation than they would normally, because by limiting the number of masts, handsets will have to emit more radiation to get a good signal.

The nature of rural development in Kerry will make it almost impossible to improve mobile coverage. It will also undermine the county's ability to benefit from next generation technologies, which would extend broadband to rural Kerry. It's a similar story in many other parts of the State where lobbying by anti-mast protesters is persuading councillors to set exclusion zones on mobile masts.

Donegal County Council and Mayo County Council have adopted similar exclusion zones within their development plans. Sligo, Meath and Laois are also believed to be considering similar amendments to their plans. The new regulations undermine the NDP and could plunge these counties back to the 1950s in infrastructure terms.

Therefore, don't be surprised if IDA Ireland fails to create new jobs in such counties. The only avenue left open to their councils then will be to create another theme park for Irish traditions.