Eircom Seeks To Challenge Local Loop Unbundling Requirement

by Jason Gorringe, for LawAndTax-News.com, London

18 February 2005

Ireland's largest, formerly state-owned telecoms firm, Eircom announced this week that it will be asking the High Court to conduct a judicial review into an order handed down by telecoms regulator, ComReg over the unbundling of the local loop services owned by the firm.

ComReg has ordered Eircom to reduce its charges and remove other restrictions, in order to allow rival firms to offer competing telecoms services incorporating the local loop.

However, Eircom has been accused by competitors and the regulator itself of dragging its feet in the matter.

In a statement released on Wednesday, Iarla Flynn, Chairman of ALTO, an organisation representing alternative operators in the communications market, explained that:

"Late last year ALTO members worked with ComReg to produce an industry set of requirements for developing LLU (local loop unbundling). These requests are aimed at improving the efficiency of the LLU service so as to allow a greater volume of customers be activated for broadband services. Given that Ireland is amongst the worst in the EU for broadband take-up and that less than 2000 lines have been unbundled, it is imperative that these innovations be implemented as soon as possible."

"Eircom’s latest action is just a further disgraceful example of one company’s efforts to block greater choice and value for consumers. We fully support ComReg’s actions on this matter."

The statement concluded by announcing that:

"ALTO members have committed millions in investment to LLU already and will invest further as this service becomes more efficient. A more streamlined LLU service would allow competitors to innovate within the market and beat Eircom on both quality of service and price."

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