Newcomers to the fixed telecoms market have had their market share fall for the first time since the market was liberalised. The figures show that competition in the market has declined over the last quarter, underlining that Eircom has regained market share at the expense of new competitors.

The share of the telecoms market held by licensed operators other than Eircom is now 20 per cent, a fall of 1 per cent on the previous quarter, according to a paper published yesterday by the telecoms regulator, Ms Etain Doyle.

Eircom's share of the domestic call market is 84 per cent while it retains 76 per cent here in the international call market. Esat Clear and WorldCom are the only other telecoms suppliers of note, used by 8 per cent and 7 per cent respectively.

Spirit Telecom, which claimed to have more than 60,000 customers, withdrew from the Republic in August.

The paper shows 84 telecoms licences have been awarded since liberalisation in December 1998 but just 43 are in operation. There are currently 23 general licences and 20 basic licences in use.

Growth in internet penetration in the Republic also stalled in the period up to September 30th, 2001 at 33 per cent, compared to the previous quarter, although this was above the EU average.

Industry sources said last night the report was representative of the general climate in European telecoms where smaller operators were experiencing funding problems and big firms were saddled with debt.

But Eircom's main competitor, Esat, said the figures were a wake- up call for the Government and proof that regulatory bottlenecks were reducing competition.

"This is a worrying report which shows competition is decreasing while Eircom still has exclusive control over the local loop," said Mr David Taylor, Esat director of regulatory affairs.

Despite a European Commission ruling mandating access to incumbent operators' local networks from January 1st, 2001, no competitors have been able to introduce new services. Eircom is currently suing the telecoms regulator in the High Court over the price at which other operators can access Eircom's network.

Yesterday Mr Justice Kelly ruled that Esat could join as a notice party to this action.

Ms Doyle said that good progress had been made since liberalisation but acknowledged it was now a difficult market.

The quarterly report suggested that fixed telecoms competition had "stabilised" and her office would seek to tackle several "bottlenecks", she added.

When asked if she would like to see the passage of the delayed Communications Bill, Ms Doyle replied that she needed additional enforcement powers to be in a position to move things on.

The Bill, which is being prepared by the Department of Public Enterprise, was due to be passed into law this year but has not yet been included on the Government's programme of legislation.

Ms Doyle specifically mentioned local loop unbundling - the process of enabling competitors to access Eircom's local network - and local authority planning as difficult issues.