The needs of consumers must be at the centre of the next-generation networks being rolled out by the telecoms industry, Minister for Communications Eamon Ryan said yesterday.

Addressing the Telecommunications and Internet Federation (Tif) annual conference in Dublin, Mr Ryan said his role in telecommunications policy was "to look after the public interest" and he called on the industry to take a "step forward" to anticipate the needs of end users.

Next-generation networks will be fully based on high-speed fibre optics running internet protocol, which makes them much more efficient than the older telecoms infrastructure. Given Eircom's market dominance in the retail and wholesale markets, its plans to overhaul its network are being keenly watched by other industry players.

A Tif survey of its members earlier this week found that Irish telecoms companies are set to invest €3.2 billion in infrastructure over the next five years.

Robert Dunn, chief executive of cable operator UPC, asked whether such a high level of investment, equating to €1,500 per home in the Republic, was sustainable. "If that gets spent, there will be a lot of next-generation networks, but there won't be a lot of money made," he said.

Mr Ryan reiterated his desire to foster competition in the market. He signalled that he would favour a "light" regulatory approach, although he said he would support ComReg using its recently-enhanced powers, if required. The Minister also reminded the industry of its responsibilities on premium-rate SMS services, in particular those aimed at children. Although the companies which provide these services are regulated by RegTel, Mr Ryan said the telecoms companies carrying such traffic also had a responsibility.

The conference underlined the fact that the industry would change fundamentally in the next three years due to the next wave of investment. John Herlihy, European director of sales and operations at Google, said that 10 years after the deregulation of the telecoms market in the Republic there was a "lot done but more to do". He also questioned whether the telecoms operators were neglecting the needs of users.

John Quist, a senior executive with KPN in the Netherlands, explained how the firm was rolling out high-speed voice, video and data services to Dutch homes.

Having spent seven years working for Eircom, he said the Republic had a lot of advantages which, if harnessed, could enable it to jump up the broadband league tables and build a similar network.

Mr Ryan said that, in order to provide broadband everywhere in the State, it was possible that there could be two types of broadband access, depending on whether subscribers lived in an urban or a rural area.