Sky Ireland have just announced they'll be launching Phone and Broadband services in Ireland later this year in a deal with BT Ireland.
More details to follow
If BT are as bad as ever, they couldn't have picked a worse partner....
Of course if it's BT it will only be available in BT's 60 or so exchanges, all the rest will be bitstream.
10 people selling black cars (with no choice of colour) is not really competition much as Comreg/DCENR would like us to believe that it is...
I doubt very much if UPC are quivering in their shoes. Are they going offering on demand services?
I'm not so sure. Obviously Sky's Dsl isn't going to compete with UPC for speed but if they can keep the costs down for the triple play they will definitely hurt them in some situations. If sky were able to provide a basic Tv package with phone and broadband for a similar or lower price than UPC's basic €66 triple play package there is definitely people who would take the sky package over UPC simply because of Sky's TV service.
At the very least this might put a fire under some providers to get costs down.
But if it doesn't change line rental then there is no difference. Eircom make money on below cost sold bitstream no matter what price it's sold for.
I can't see this happening as the cost of line rental is set by Comreg and set artificially high so eircom can recoup their costs...so before you get any service on your line you are paying E26+ so there's not a lot of wriggle room
It's just Sky marketing spin to try and stop customers going to UPC. People need to ignore "triple" play and pick & match services.
It adds nothing. BT even gave their entire Retail base to Vodaphone.
Pick each service based on value, availability, your requirements and real performance. Avoid bundled lock-in.
You are right of course there isn't a lot of wiggle room but what are other providers going to do when Sky start doing a basic bundled TV/broadband/phone package for <€60, spread their cheeks and just take it?
It's not real competition as we all know but it can't be a bad thing that a company the size of sky has thought to join the market even if it is for the most part just to head off UPC.
I agree with this and I'm sure the majority of people who view this board do too but your average Joe Bloggs who just wants "all da channels" and cheap broadband for the average stuff would sooner go for what seems like a decent triple play deal for the one bill.
If Sky can do that then fair ball to them or even make a business case for doing it...maybe the business case is simply to head off UPC
The only part of the equation where they can make a few bob is on the LLU part. I can't see where they can make significant savings/reductions on the bitstream part of the equation.
LLU line rental currently costs E12.41 so there's some wriggle room there but the bitstream costs are fixed and exorbitant. Here is a table of current costs for bitstream : http://www.eircomwholesale.ie/News/Bitstream_Price_Cuts/
As you can see the most basic DSL provision costs E21.50.
Now excluding retail minus costings...
so 21.50 + 26 = 47 includes a bit of wholesaler profit
That's about the cheapest that bitstream DSL can be delivered at...and most providers like Voda are only charging E40 (with pathetic caps)
The only real wriggle room is on the cost of the TV package.
Sky must have spotted something we can't see or it's a loss leader
On the ball, I'd say.
That's all it is for Sky. There hasn't been any real change in the Irish market that would make Sky want to jump in other than a rampant UPC. Also maybe I haven't seen it but have they actually said that they are going to go down the bitstream road? All I've seen is their tie up with BT and their LLU exchanges.
The conspiracy theorist in me is half expecting a cut of line rental to be announced in the next while
Also just so we are clear that <€60 figure I mentioned above is complete speculation. Nothing at all to think it will be that low other than it will be barely worth their while getting the boat over unless they are able to compete with UPC for price.
Not a hope in hell of that
Well eircom's definition of "competition" isn't the same one used by the rest of the world, for instance to compete with UPC they charge E20 extra for a lesser service. see : http://www.eircom.net/broadband/fibre/
E50 a month for 25Mbs hardly competes with UPC in any meaningful way.
Maybe this is the same route as Sky will take?
Maybe Sky are reading the playbook of eircom? I sure as hell don't forsee an outbreak of any form of competition maybe just a lot more status quo