Telecommunications company Ocean is set to unveil a package of phone services today, which will include free Internet access.

The package is understood to be aimed primarily at business customers, but with a residential element as well. Ocean, the joint venture between the Electricity Supply Board and British Telecom, expects the move will help it rapidly increase its market presence and market share in the Republic.

Ocean declined to confirm details last night. But industry sources said such a move would make sense for the company as it tried to make its mark in an increasingly competitive market place.

It is likely that this will be introduced as part of an overall bundled package, encompassing the Ocean range, which includes the traditional telephone service, data service and Internet access.

The move will put pressure on other Internet service providers to match the offer.

Telecommunications companies are focusing increasingly on the Internet as a business tool.

It is also seen as an effective way to accelerate market share as more people switch to using data rather voice.

It is understood that Ocean is also considering offering the Internet service to residential customers.

The company introduced a residential service last year, when the market was liberalised, but its focus to date has been almost entirely on the business market.

Ocean is interested in capturing some of the international call business in the residential sector, but has ruled out competing in the local call market. The company's chief executive, Mr George McGrath, has said previously there is no money to be made in the local service.

Ocean has a telecommunications backbone in the Republic, through its link with the ESB. But it will still have to interconnect with Telecom Eireann to deliver part of its services.

Ocean has been described as adopting a low key approach to the marketplace to date. But industry observers see this latest move as a more visible presence.

The company entered the market in spring 1998.

The ESB, through ESB International Telecommunications, took on insurance company AIG as a partner. It has a 20 per cent holding in the venture.