I propose to take Questions Nos. 2 and 3 together.
One of my first tasks will be to ensure that the Telecom Éireann strategic alliance deal is brought to a successful conclusion in the near future. This deal represents an excellent outcome to the search for a partner for Telecom Éireann. It is good for the Irish consumer and Irish business and represents excellent value in terms of both the strategic benefits which Telecom Éireann will receive and in terms of cash value which, it is anticipated, will produce overall proceeds in excess of £500 million.
The principal features of the deal, in terms of its strategic and operational merit and the purchase price, were made public at the time of the signing of the deal in July, through numerous debates in this House and in the media. It is, therefore, not my intention to repeat them today. Deputy Brennan must accept, however, that certain aspects of this deal are commercially sensitive and must remain confidential.
In relation to the recent Commission decision on Ireland's derogation, this is a successful outcome and in line with the Government's strategic objective for the telecommunications sector. The decision strikes a balance between the needs of telecommunications consumers, who will soon start to see greater choice, higher quality and lower prices, and the need to secure a period of transition in which Telecom Éireann can make the necessary structural changes for successful operation in a competitive market.
The strategic alliance agreement includes a condition that a derogation be secured from the need to liberalise voice telephony and the supporting public infrastructure until 1 January 2000. The Commission decision enables the Government to fulfil this condition. Telecom Éireann's strategic partners accept the decision and are committed, in partnership with Telecom, to meeting the challenge of the earlier liberalisation date for alternative infrastructure which is now proposed.
This part of the Commission's decision does not change the existing situation in relation to business telecommunications traffic, contrary to what has been widely reported. The July 1997 date for liberalisation of alternative networks permits these networks to carry liberalised traffic only but not voice telephony traffic which is reserved for Telecom Éireann under the same derogation decision until 1 January 2000. The voice telephony reservation does not make any distinction between business calls and any other voice calls which are originated and delivered over switched networks open to the public.
Finally, it is to be expected that, as part of the review of large transactions of this type, the EU Commission will examine all aspects of the deal and this obviously includes issues arising from Telecom Éireann's majority ownership of Cablelink in the context of the alliance. This is standard procedure and I am confident that clearance for the deal will be received in due course.