Telecom Eireann has confirmed it is to buy out its partner, Motorola, in the paging system Eirpage, bringing its stake from 51 per cent to 100 per cent. Some 40,000 people use the paging service, which has annual revenues of £3.5 million and 59 employees.

Neither company would comment on the terms of the deal, but industry analysts speculated that it would have cost the telephone company £2 million. Industry sources have said that Eirpage is highly profitable, with costs of only £1.5 million a year. Subscribers pay £8 to £10 a month for the service.

But some analysts believe the system is outdated and needs substantial investment to bring it up to scratch. Commenting on the purchase, Telecom Eireann's deputy chief executive, Mr Alan Corbett, said both companies were pleased with the deal.

Motorola, which manufactures and designs mobile telecommunications products and employs more than 2,000 people in Ireland, said the sale represented "a tactical decision to concentrate on core manufacturing and software design business" in Ireland.

Esat Digifone, the mobile telephone company, is offering customers an insurance package to cover lost, stolen or accidentally damaged handsets.

The firm also said it had extended its coverage to 90 per cent of the Republic's population.

The insurance scheme, Fone Cover, is being introduced with Eagle Star, and will also cover airtime illegally used up to the value of £250.

The package costs £3 a month, the company said, including a Government levy of 2 per cent.