Esat may be in a position to offer Irish customers high-speed internet services using digital subscriber line (DSL) technology before Eircom, according to Mr Richard Cooke, Esat chief executive.

DSL technology makes broadband internet access available to households and businesses using the existing copper telephone wires that enter buildings.

Eircom plans to introduce its high-speed internet product, i-stream, by October 2nd but may face a lengthy delay due to a dispute with the telecoms regulator, Ms Etain Doyle.

Speaking to The Irish Times yesterday after IBEC's annual telecoms and internet conference, Mr Cooke said Esat planned to offer its high-speed internet service outside Dublin by January. Esat is involved in a fast-track programme with the telecoms regulator and Eircom, which should enable the firm to use the local telecoms network to offer a range of voice and data services.

The company has made good process recently and believes it will succeed in opening Eircom's local loop to competition in a process known as unbundling the local loop, according to Cooke.

"We are fairly optimistic that we'll be able to get out there by January in five exchanges," he said. "We will offer our own DSL and re-sell bitstream DSL Eircom's i-stream product if we can."

Eircom's DSL service faces a lengthy delay because of an ongoing dispute over fees that Eircom wants to charge other telecoms operators to offer similar services.

The telecoms regulator has criticised Eircom's charges because she believes they are not cost oriented and would damage competition in the internet market.

Speculation was mounting among telecoms experts last night that Ms Doyle is poised to issue a pricing directive forcing Eircom to lower its wholesale charges.

An Eircom spokesman reiterated an earlier threat last night that Eircom would withdraw its product from the market rather than offer it to competitors at lower charges. This may enable Esat to introduce its internet product before Eircom.