Swedish firm Tele2 is to launch its fixed line telephone services in Ireland tomorrow. The Nasdaq listed telecom plans to roll out more telephone services over the coming year.
In a broker note published yesterday Goodbody analyst Neil Clifford said that given Tele2's experience of competing in telecommunications markets across Europe it is likely to pose a significant threat to all Irish fixed line operators including Eircom.
Clifford said it was difficult to see why Tele2 might be interested in the Irish fixed line market given its small size and the fact that Irish call charges are among the lowest in Europe, but he said the firm's intention may be to follow on by building a presence in the mobile market and other markets such as cable TV and then to cross sell services in each market.
Tele2's Mark O'Toole said: 'The essence of the Tele2 service is that it is a first rate product at a realistic price, benefiting Irish customers and ends a history of premium call charges Irish telephone users have been subject to for too long because of lack of competition.'
The firm already has almost 25 million customers in 24 countries.
