Telecom Eireann is serious about involvement in the internet. Having started an Internet Service Provider (ISP) and acquired another Irish ISP, Indigo, it has now invested in one of the best known Irish Internet firms, Nua.

Founded in 1995 by Gerry McGovern, Antoin O'Lachtnain and Niall O'Sullivan, Nua is one of the better known and respected internet consultancies in Ireland. Nua also has offices in New York and has a more globalised market coverage than most of the other Dublin based consultancies. It is also a resource for surveys on the internet and E-commerce.

The deal is complex and it is expected that Telecom Eireann will take a minority stake in the firm. It will also invest in another operation created by Nua. The investment in Nua, according to the Irish Times could possibly be as high a 20% stock share. The report in the Irish times went on to say that the investment in Nua will cost them approximately £1.3 million.

The second part of Telecom's investment is in the Local Ireland venture. This is a venture, set up by Nua to act as a kind of standardised country-wide resource for internet services. A quick look at the Waterford entry revealed a distinct lack of sites and information, most of it being provided by two sites. While the premise has merit, it is an attempt to standardise what is essentially chaotic and provide an AOL or Netcenter type portal view of Ireland on the internet.

The size of the investment by Telecom Eireann is a measure of their intent of becoming the dominant player in the Irish internet market. Again according to the Irish Times, they are investing £4 million over the next two years in developing the Local venture. In return they will have a 90% share. Nua apparently spent three years developing the Local Ireland concept and it is heavily advertised on Telecom Eireann's TInet webpages. However it is in competition with other ventures that, while not anywhere as near well funded, are numerous. Local Ireland has coherence in its favour.