Eircom Reaches Resolution With Telecoms Regulator Over Broadband Roll-Out

by Amanda Banks, Tax-News.com, London

19 April 2002

It was revealed on Wednesday that Irish telecommunications giant, Eircom, has finally reached an agreement with telecoms regulator, Etain Doyle, over the country-wide introduction of broadband DSL capability.

The dispute began last year when Eircom, which has invested around 125 million euros in the project, revealed that it intended to charge other companies 75 euros per month for re-selling the high speed business internet connection to consumers. The Office of the Director of Telecommunications Regulation (ODTR) raised serious concerns at this high tariff, and asked the organisation to provide a 'concise, coherent, and convincing' analysis of the pricing structure in order to justify it.

'Despite extensive contacts, Eircom have failed to satisfy the Regulator that their proposed wholesale prices are cost-orientated and non-discriminatory,' the telecoms regulator announced at the time, explaining that the prohibitively high price could prevent other operators from purchasing the wholesale product, which would have serious implications for the development of competition in the marketplace.

Speaking earlier this week, Eircom's Chief Executive, Philip Nolan, announced that a reduced wholesale price of 49 euros per month had been agreed with the regulator. Although the company would have preferred a higher price, he explained, Eircom will still make a return on its 125 million euros investment.

'We would have liked a higher figure, (but) there is a degree of pragmatism here, we want to move forward,' he said. According to the telecommunications company, the retail price for consumers will be announced some time next week.

Commenting on the agreement, Ms Doyle also seemed satisfied with the result. 'I am very pleased by these developments which I believe may indicate a more open approach on the part of Eircom's new management,' she observed, adding that:

'The introduction of competitive broadband DSL services is a welcome step in the development of the Irish telecommunications market.'

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