The telecommunications regulator, Ms Etain Doyle, has begun a period of consultation on the future of wireless technology. A paper, published by Ms Doyle yesterday, said radio communications could make a significant contribution to the local connection between customers and networks.

"In the past, such connections have generally used cables, but radio offers the prospect of rapid introduction of high quality competing services, without the need to dig up roads and footpaths. It offers the twin benefits of reduced market entry cost and increased speed of deployment," the document said.

It outlines the changing structure of local telecommunications, proposing to offer 11 new licences in three markets. It says the regulator's suggested approach would promote access to advanced telecommunications services for rural areas, offer new opportunities for major business users and enhance service competition for small and medium-sized enterprises.

Eireann's monopoly on voice telephony will come to an end this December. Already several other telephone companies - including Esat, WorldCom and Ocean, a consortium led by BT and the ESB - have indicated that they will compete with the State-owned firm for business and domestic subscribers.

The regulator has just completed a more general period of consultation with the industry, focusing on the regulatory framework but has postponed a decision on the most controversial issue of such regulation, the system by which the providers of service to commercially non-viable areas will be compensated.

The consultation period on wireless technology runs until September 25th.