9 September 1999 Edition
Cable changeover - who benefits?
How many economic reports have there been in the last year that have emphasised the need for massive investment in the state's infrastructure?
Whether it is roads, rail, communications, housing, or education the message has been the same. Build the infrastructure and jobs and wealth will stem from your efforts.
There has been some heeding of this research, even though the imbalance between infrastructural investment in the East and the West of Ireland has not been even remotely redressed.
Others though, have realised the value of owning infrastructure in the Irish economy. Two transnational companies have emerged as the owners of the largest cable companies in Ireland. NTL bought Cablelink earlier this year for £535 million. One of NTL's major investors is Bill Gates' Microsoft, which has invested $500 million in NTL as part of their global strategy of investing in cabled communication systems. NTL through their Cabletel subsidiary are already major players in providing cable systems in the Six Counties.
Now another communications giant, Telecommunications International (TCI), has made a major purchase in the Irish economy. TCI is one of the top seven broadcast media giants in the USA. TCI own 50% of Princes Holdings. This company is the major provider of cable services in the Cork and Limerick area. Now they have purchased the Cable Management network. This company has cable networks in north County Dublin, Kildare, Wicklow and Westmeath. The other major shareholder in Princes Holdings is Tony O'Reilly's Independent News and Media group.
It would be wrong to say that there is something sinister or dangerous about these purchases. It would be right to say though that both TCI and NTL hope to make substantial profits form their Irish holdings. Profits that in the case of Cablelink would have stayed in Ireland as it used to be a state owned company.
Can we rely on Bill Gates, Tony O'Reilly and others take decisions that are in all our interests when running these companies? Don't hold your breath.
They do recognise at least that good infrastructure is the key to economic success. So why did the Dublin government let Cablelink be sold off so quickly? The much-hyped privatisation of Telecom is likely to end up with this company dominated by transnational owners. Already, 35% of the company is owned by interests outside the state
When Cablelink was sold by RTE and Telecom, there was little mention of what plans NTL had for the company. There were no safeguards for ensuring customers would be able to afford the services offered by the new company. The focus was only on the £500 million-plus price tag.
If the Dublin government is really interested in developing economic and social infrastructure, they should take that first step of halting the sell-off and planning a strategy of deciding what infrastructure we really need to create jobs. That would be a refreshingly logical first step.
Whether it is roads, rail, communications, housing, or education the message has been the same. Build the infrastructure and jobs and wealth will stem from your efforts.
There has been some heeding of this research, even though the imbalance between infrastructural investment in the East and the West of Ireland has not been even remotely redressed.
Others though, have realised the value of owning infrastructure in the Irish economy. Two transnational companies have emerged as the owners of the largest cable companies in Ireland. NTL bought Cablelink earlier this year for £535 million. One of NTL's major investors is Bill Gates' Microsoft, which has invested $500 million in NTL as part of their global strategy of investing in cabled communication systems. NTL through their Cabletel subsidiary are already major players in providing cable systems in the Six Counties.
Now another communications giant, Telecommunications International (TCI), has made a major purchase in the Irish economy. TCI is one of the top seven broadcast media giants in the USA. TCI own 50% of Princes Holdings. This company is the major provider of cable services in the Cork and Limerick area. Now they have purchased the Cable Management network. This company has cable networks in north County Dublin, Kildare, Wicklow and Westmeath. The other major shareholder in Princes Holdings is Tony O'Reilly's Independent News and Media group.
It would be wrong to say that there is something sinister or dangerous about these purchases. It would be right to say though that both TCI and NTL hope to make substantial profits form their Irish holdings. Profits that in the case of Cablelink would have stayed in Ireland as it used to be a state owned company.
Can we rely on Bill Gates, Tony O'Reilly and others take decisions that are in all our interests when running these companies? Don't hold your breath.
They do recognise at least that good infrastructure is the key to economic success. So why did the Dublin government let Cablelink be sold off so quickly? The much-hyped privatisation of Telecom is likely to end up with this company dominated by transnational owners. Already, 35% of the company is owned by interests outside the state
When Cablelink was sold by RTE and Telecom, there was little mention of what plans NTL had for the company. There were no safeguards for ensuring customers would be able to afford the services offered by the new company. The focus was only on the £500 million-plus price tag.
If the Dublin government is really interested in developing economic and social infrastructure, they should take that first step of halting the sell-off and planning a strategy of deciding what infrastructure we really need to create jobs. That would be a refreshingly logical first step.