Ireland will have almost one million broadband subscribers by the end of the year according to ComReg, the communications regulator. John Collinsreports.

This would put the broadband penetration level at about 23.5 per cent and suggests the rapid growth of the last year has driven Ireland up the international league tables. Figures released by the Organisation for Economic Co-operation and Development (OECD) in June 2007 show that the average penetration rate for its 30 member states was 18.8 per cent. John Doherty, chairman of ComReg, said developments in the communications sector had made 2007 a "good year for Ireland", but there are "interesting and challenging times" ahead.

"Competition has been enhanced and we now have a range of operators competing, particularly in the broadband market," said Mr Doherty.

"Three years ago, the broadband market was in dire straits and we had a single seller in the market - Eircom."

While the Government's National Broadband Scheme is essential to bring service to the 10-15 per cent of the country that does not have acceptable coverage, Mr Doherty said the debate now needs to be about higher speeds and new services such as television over broadband.

ComReg has no legal or regulatory powers to stop the break-up of Eircom, according to Mr Doherty.

"There are a number of issues such as how the universal service obligation will be met and how competition would be enhanced by it," he said.

"We are not influenced by the needs of a particular company."

Eircom's proposed investment in faster, next-generation networks could create a "digital divide", where those in urban areas have access to better services than rural dwellers said Mr Doherty. He noted that in Germany, Deutsche Telecom has only upgraded the major cities.

On the mobile market, Mr Doherty said that having four network-based competitors - Vodafone, O2, Meteor and 3 - was considered impressive by other European regulators.