The news will come as a blow to businesses and consumers who have been counting on the benefits which broadband would bring and could frighten off inward investment.
In a major policy statement on telecommunications developments, IBEC said: "The roll-out of broadband services is both urgently required to ensure Ireland's continued economic development and is a resource that consumers are demanding."
It was vital, it said, to offer world-class broadband infrastructure in order to retain existing investment and to attract industries such as Application Service Providers and cater for increased demand.
The report also highlighted the lack of an agreed national framework within which telecoms operators can rollout their backbone and access infrastructure.
But media reports are now suggesting that Eircom has pulled back its plans to roll-out DSL (Digital Subscriber Line) services, which give customers speedier Internet access and enable them to receive video over their fixed line phone.
The company had indicated before that April of this year was a likely launching point but this is not now going to be met. The likely rollout date could now be June or later.
A company spokesman confirmed to the Irish Independent that Eircom was "in line with other teleco's around Europe reviewing the roll-out of DSL." At the same time the company has curtailed its systems integration contract with global consulting specialists Accenture.
Esat was also said to be reviewing its DSL strategy and reportedly suggested it may not deploy the technology without a Government subsidy to support its investment, the Irish Times reports.
Esat Group Chief Executive, Richard Cooke, confirmed that the company was reviewing its DSL strategy and may pull out of trials with Eircom.
He claimed that high charges which Eircom proposed for accessing its local network made deployment of DSL uneconomic.
"We have a situation where we don't have a single local loop unbundled and Eircom's proposed charges are amongst the highest in Europe," he told the Irish Times.
Cooke said the lack of progress on regulatory issues meant nothing would happen unless the Government took the initiative and subsidised the roll-out of DSL technology.
IBEC's Director of its Telecommunications and Internet Federation (TIF), Tommy McCabe, said the lack of a common set of planning and local authority guidelines was seriously impinging on the ability of the industry to roll-out huge investments in an efficient manner.
As of Tuesday, Esat still had live its ADSL information and registration page at http://register.esatfusion.ie/adsl/
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