Comment: A feature article in last week's Business This Week argued that the Republic is behind on broadband. This is based on league tables of broadband penetration in the European Union. However, this does not convey the true picture of what really is happening with broadband.

Here are the facts:

In a very short period, one in ten households in the State have taken up broadband. This means that almost one in four PCs are connected to broadband.

That the Republic does not score well on a static chart of broadband penetration is a function of history rather than current performance. (Alcatel, a leading broadband equipment vendor calculates that the Republic is about 12 months behind the UK, where BT is being widely praised for its moves on broadband - better progress than many commentators previously assumed).

Late last year Eircom set a target to get above the EU average penetration level for broadband by December 2007, having beaten its previous target. We are determined to achieve this. In the meantime, bemoaning our league position will not get us there faster and will only serve to paint a misleading, negative picture.

That a licensing restriction prevented Eircom from rolling out an advanced broadband platform in 2001 (and caused a delay while a compliant platform was put in place) is now a moot point. However, it is this delay that current league tables reflect, not the recent good performance of broadband in the Republic.

Another implicit argument in the article is that the lack of unbundling is to blame for low broadband penetration in the State. However, any analysis across the EU shows no correlation between levels of unbundling and broadband penetration. For example, less than 1 per cent of lines in Belgium are unbundled and it has one of the highest levels of broadband penetration.

Overall, only 2 per cent of lines in Europe are unbundled, accounting for only 13 per cent of broadband lines. Most consumers do not know what unbundling is and are not interested.

It is right to point out that unbundling levels in the Republic are very low but the question is why.

Local loop unbundling has been available in the State since 2001. One operator claims to have unbundled 40 of Eircom's exchanges. However, the reality is that other operators have typically preferred to take up Eircom's wholesale products because these have offered a better economic return.

The range of products available to other operators to re-sell in the Republic would be the envy of operators in many European countries. That operators have largely chosen this method of market entry (connecting 35,000 customers) rather than unbundling to sell broadband is their choice.

Telecoms in the State is now highly competitive (particularly in contrast with other utilities). Firms compete either with a range of wholesale services on Eircom's network or via competing infrastructures in mobile, cable and wireless.

But the most insidious argument put forward by some commentators is that other operators have a right to unbundle Eircom's network, apparently in whatever way they desire. The argument is put forward that, if this is allowed, consumers would benefit from a range of hypothetical services. This argument conveniently ignores several issues.

Who will pay for investment in the network? Who will upgrade the exchanges for broadband? Who will pay for stranded assets or bad debts? The answer in almost every case is either Eircom or the consumer. An impact on either would be bad news for broadband in the Republic.

Eircom is currently half way through a programme of €1 billion network investment over five years. Since its re-listing last year on the stock markets in London and Dublin, Eircom is attracting international investment into the Republic - investment for the State's telecoms infrastructure.

The good news about these investors is that they are rational and will make their investment on the basis of a likely return. Management's role is to ensure that this investment is sensible, well executed and reasonably protected. If this is done well, the company will be able to attract further investment for its customers and its network.

If that investment comes under threat from what we perceive to be bad regulation, then we have to act.

Eircom is entitled to the same constitutional rights as any citizen or other firm. The company has no choice but to take action where it believes its rights are being infringed. This is the only way for it to continue to attract the investment which is essential if people in the Republic are to have access to the best broadband services.

David McRedmond is the commercial director of Eircom