Telecommunications: A Tale of Privatisation Failure

Abstract

The privatisation of Eircom in 1999 has proved to be one of the most controversial episodes in Irish business history. The divestiture of the firm has been associated with enormous dissatisfaction on the part of most stakeholders, including small shareholders who incurred considerable losses, customers who have failed to receive a modern and reliable service and competitors who have struggled to gain a foothold in relevant markets. From a national perspective, the privatisation of Eircom has had negative consequences for a regional economy that relies heavily on its telecommunications infrastructure and services to create the conditions necessary for the creation of a modern knowledge economy.