As if Eircom had not enough problems, it is now faced with a more rapid handing over of the one area of the telecommunications network where it retains a monopoly - the line between a local exchange and individual homes and businesses. The so-called local loop is being unbundled, or opened to competition.

Eircom had already lost the argument with the Minister for Public Enterprise over a more limited form of competition in this area of the network and she had announced plans to legislate this autumn for unbundling by April of next year. Now the European Commission has pressed the accelerator, saying it wishes to see unbundling by the end of this year.

You can see why. Despite all the competition which has been introduced into the telecoms sector, former state monopolies still control 91 per cent of the market in the EU, down only slightly from the 96 per cent they controlled in 1997.

There remain arguments over whether the ambitious timetable came be met and what price Eircom should be allowed to get from other users of the network. What seems beyond doubt is that competition on the local loop will lower prices and dramatically increase the amount and speed of uses over the cable.